- The GENIUS Act sets strict rules for stablecoins, targeting transparency and full reserves.
- Senate to vote on GENIUS Act by May 23, signaling urgency in stablecoin regulation.
- The bill will boost trust, clarify oversight, and reinforce the USD’s role in digital finance.
The U.S. Senate, led by Majority Leader John Thune, is preparing to vote on the GENIUS Act, aimed at regulating stablecoins, before Memorial Day. He confirmed the expected vote by May 23 during a private meeting with the Republican senators. Notably, the Act was introduced by Senator Bill Hagerty in February and was approved by the Senate Banking Committee in March.
A Defining Moment for Stablecoin Regulation
The GENIUS Act seeks to establish a structured legal framework for fiat-backed stablecoins, pegged to the U.S. dollar. The bill imposes strict requirements, including full reserve backing, transparency measures, and auditing obligations for issuers.
Consequently, it aims to build institutional confidence and clarify the roles of both federal and state regulators. Under the framework, large issuers exceeding $10 billion in assets would fall under federal oversight, while smaller players could operate under state-level compliance if standards are aligned.
Besides regulatory clarity, the bill enforces anti-money laundering procedures, consumer protection rules, and prohibits firms from advertising misleading facts portraying stablecoins as government-backed or FDIC-insured.
Political Momentum Builds Ahead of Vote
According to sources, Thune addressed the GENIUS Act timeline during a closed-door session with GOP senators. The bill has bipartisan traction after clearing committee review with an 18–6 vote, though Senator Elizabeth Warren’s proposed amendments were not adopted.
Meanwhile, the House has introduced a complementary measure, the STABLE Act, reflecting Republican priorities around transparency and fiscal oversight. These legislative efforts align with President Trump’s recent executive orders, some of which shed light on crypto regulation but lack enforceability without congressional approval.
Moreover, Trump’s order created a working group to evaluate a national crypto stockpile and broader regulation for digital assets, including stablecoins. However, Democrats raised concerns over Trump’s connections to World Liberty Financial, a stablecoin issuer linked to his family.
Related: Bo Hines Confirms Stablecoin Legislation After GENIUS Act
Shaping the Future of the Dollar in Digital Finance
The GENIUS Act’s adoption could redefine stablecoin oversight and cement the dollar’s dominance in the digital financial landscape. Requiring U.S. Treasury-backed reserves, the bill could also drive demand for dollar-denominated assets globally.
Bo Hines, the Executive Director of the President’s Council of Advisors on Digital Assets, hinted that major legislation would pass within two months. Some stated that the Act would bring long-overdue regulatory clarity, which is crucial for adoption and innovation, however, critics cautioned that the bill might impose centralization risks, raising barriers for smaller issuers. If passed, the GENIUS Act may strike a pivotal balance in fostering innovation while strengthening trust and scalability in a fast-moving, digital economy.
