Senate Nears Bipartisan Vote on First Federal Stablecoin Regulation

The Senate is poised to pass the bipartisan GENIUS Act, the first major federal legislation to regulate stablecoins, with support from President Donald Trump and both parties. The bill, led by Senators John Thune, Cynthia Lummis, and others, aims to establish a comprehensive framework requiring stablecoin issuers to maintain 1:1 backing with U.S. dollars or liquid assets, adhere to anti-money laundering rules, and undergo regular audits. It includes a tiered regulatory approach, allowing smaller issuers to opt for state oversight while larger ones fall under federal supervision, and places restrictions on foreign issuers and tokens that pay interest. This legislation reflects a notable political shift, exemplified by Senator Ruben Gallego's move from crypto skepticism to industry openness, bolstered by significant crypto-aligned campaign support. Market response has been optimistic, with increased stablecoin trading volumes and gains in crypto-related stocks, signaling Wall Street's bullish stance amid growing regulatory clarity. The bill is expected to pass following a procedural vote requiring 60 senators, marking a critical step in safeguarding consumers and promoting financial innovation in the digital asset space.