Senate Nears Passage of Landmark Stablecoin Bill

The U.S. Senate is on the verge of passing the GENIUS Act, a bipartisan bill establishing the first federal regulatory framework for dollar-backed stablecoins, which could transform the digital payments landscape. The legislation aims to provide clear rules for stablecoin issuance and management, promoting innovation in the U.S. payment system while protecting American financial leadership. It includes provisions allowing certain crypto banks, such as special purpose depository institutions, to operate across state lines with limited regulatory approval, drawing both support and concern from state regulators and advocacy groups. President Trump and his family have financial interests in the stablecoin sector, notably through a crypto startup launching its own dollar-pegged stablecoin, which has raised some controversy due to the bill’s exclusion of congressional members but not the President and his family from profit bans. Market reactions have been positive, with stablecoin issuers like Circle seeing significant stock gains and investors expressing optimism that regulatory clarity may increase institutional adoption and trading activity. Supporters emphasize that the bill would modernize outdated payment infrastructure, enable faster and cheaper transactions, and reinforce the U.S. dollar’s dominance globally.