Senate approves GENIUS Act for cryptocurrency regulation in landmark decision.
The U.S. Senate has passed a significant piece of legislation, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), by a vote of 68 to 30 on June 17, 2025. This landmark bill aims to create the first comprehensive federal regulatory framework for "payment stablecoins" and their issuers in the United States [1][3].
### Key Details of the GENIUS Act:
The Act establishes a regulatory framework that limits the issuance of payment stablecoins to "permitted payment stablecoin issuers" (PPSIs) and qualifying foreign issuers. Entities may be regulated at either the federal or state level depending on the issuer type and scale, and foreign issuers must meet comparable standards and come under the Office of the Comptroller of the Currency (OCC) supervision to operate in the U.S. [1][2][3]
Stablecoin issuers must hold full reserve backing in cash or liquid assets, and companies with market caps over $50 billion must undergo annual audits. The Act also seeks to balance regulatory oversight with room for innovation, promoting growth and consumer confidence [1][2][3].
The White House has endorsed the Act, positioning it as a pro-growth legal framework to expand stablecoin use as a payment system [1][2][3]. The bill is now under consideration in the House of Representatives, where a companion bill (the STABLE Act of 2025) is also being debated; the two will need to be reconciled before final passage.
### Comparison with Regulatory Regimes in the European Union and Hong Kong:
The U.S. GENIUS Act, the European Union's Markets in Crypto-Assets (MiCA) regulation, and Hong Kong's Stablecoin Framework each offer unique approaches to stablecoin regulation. The GENIUS Act focuses on federal oversight and reserve requirements, while MiCA covers a broader range of crypto assets with strict consumer protections and transparency rules. Hong Kong's approach emphasizes licensing and compliance, aiming to foster a safe yet innovative environment for stablecoins and digital assets [2][4].
### Implications and Future Outlook:
If enacted, the GENIUS Act will provide a clear and prudent model for balancing innovation with financial stability, supporting greater institutional participation and international competitiveness in the digital asset market. The Act has been of great interest to U.S. banks, such as Bank of America, JP Morgan, Wells Fargo, and Citi, that have indicated their intention to launch US dollar-pegged stablecoins [1].
The Wyoming Stablecoin Act authorizes the state to launch its own US dollar-pegged stablecoin, and the passage of the GENIUS Act has been of critical importance to the cryptoasset industry in the U.S., ensuring the country remains competitive in the cryptoasset and blockchain space.
Vietnam has also passed legislation creating a regulatory framework for cryptoassets, effective from January 1, 2026. The Financial Services Regulatory Authority (FSRA) of Abu Dhabi has published updates to its Digital Asset Regulatory Framework, further demonstrating the global focus on stablecoin regulation [1].
In conclusion, the GENIUS Act marks a critical development in U.S. stablecoin policy by introducing a nationally coordinated regulatory regime emphasizing reserve backing, transparency, and dual federal-state oversight, positioning the U.S. alongside other global leaders in crypto regulation like the EU and Hong Kong [1][3]. Should it become law, it will provide the U.S. with a coherent regulatory framework for stablecoins, bringing it into greater alignment with jurisdictions such as the European Union and Hong Kong.
Sources: [1] CoinDesk (2025). U.S. Senate Passes Stablecoin Bill, Setting Stage for House Debate. [online] Available at: https://www.coindesk.com/policy/2025/06/17/us-senate-passes-stablecoin-bill-setting-stage-for-house-debate/ [2] Coindesk (2025). GENIUS Act vs. MiCA: How the U.S. and EU Stablecoin Regulations Compare. [online] Available at: https://www.coindesk.com/policy/2025/06/21/genius-act-vs-mica-how-the-us-and-eu-stablecoin-regulations-compare/ [3] Fortune (2025). The U.S. Senate Just Passed a Major Stablecoin Bill. Here's What It Means. [online] Available at: https://fortune.com/2025/06/17/us-senate-stablecoin-bill-genius-act/ [4] South China Morning Post (2025). Hong Kong Takes Aim at Becoming a Global Crypto Hub as It Cracks Down on Unregulated Stablecoins. [online] Available at: https://www.scmp.com/business/companies/article/3169432/hong-kong-takes-aim-becoming-global-crypto-hub-it-cracks-down
- The GENIUS Act, with its focus on webinars covering secure technology, could address concerns about the security of elliptic-based encryption used in payment stablecoins.
- Amid the news surrounding the GENIUS Act, sports enthusiasts might debate the potential impact of US dollar-pegged stablecoins on the future of sports sponsorships and bettings, a growing market.
- As weather forecasts increasingly rely on complex technology, meteorologists worldwide could find themselves counting on the GENIUS Act to ensurestablecoin technology's integrity, paving the way for more accurate and timely weather predictions.
