The U.S. Senate has passed the Global Economic and National Innovation for United States (GENIUS) Act with a 68-30 vote, creating the first comprehensive federal regulatory framework for stablecoins. The legislation mandates that stablecoin issuers maintain 100% reserves and undergo annual audits if their market capitalization exceeds $50 billion, aiming to enhance transparency and consumer protection.
Industry leaders have endorsed the regulatory clarity provided by the act. Yuval Rooz, CEO of Digital Asset, characterized it as a pivotal transition from ambiguous enforcement to defined oversight, potentially accelerating institutional participation in cryptocurrency markets. The bipartisan support signals growing legislative consensus on stablecoin governance.
Despite broad backing, the bill faces criticism from figures including Senator Elizabeth Warren, who cited concerns over omitted amendments and potential conflicts of interest. These objections highlight ongoing debates around the legislation’s scope and implementation.
The GENIUS Act is poised to influence broader cryptocurrency policy by encouraging traditional financial institutions to engage with digital assets and addressing regulatory gaps in decentralized finance (DeFi). Its emphasis on quantifiable risks and objective standards may accelerate integration between crypto markets and traditional finance systems.
This framework represents a strategic shift toward measurable regulatory criteria, moving away from subjective judgments to foster market stability and institutional trust in digital assets.