The U.S. Senate has handed the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act (S. 394) by a vote of 68-30, establishing the primary complete federal framework for fiat-backed stablecoins.
The bipartisan laws was launched by Senator Bill Hagerty and co-sponsored by Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis. It handed below the official title “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025.”
“Today, on a bipartisan basis, the Senate passed its first piece of major legislation this Congress with my bill—the GENIUS Act,” stated Senator Hagerty. “With GENIUS, the United States is one step closer to becoming the crypto capital of the world.”
The GENIUS Act tightly regulates fee stablecoins, requiring 1:1 dollar-backed reserves, month-to-month disclosures, audits, and clear federal or state licensing. It prohibits algorithmic cash and locations strict limitations on rehypothecation and commingling of reserves. Importantly, the invoice additionally amends present securities legal guidelines to explicitly state that compliant stablecoins aren’t securities—releasing them from SEC jurisdiction.
Whereas the invoice is aimed toward stablecoins, Bitcoin proponents see it as a foundational win.
Stablecoins act as bridges into Bitcoin, enabling on-ramps, simpler settlements, and institutional entry. By legitimizing stablecoin infrastructure, the U.S. is not directly reinforcing the rails on which Bitcoin operates.
And because the monetary system modernizes, trusted entry factors like dollar-backed tokens may play a job in onboarding new Bitcoin customers—particularly in worldwide markets and company treasuries.
“The U.S. Senate has passed the GENIUS Act — landmark stablecoin legislation that provides regulatory clarity, enhances consumer protection, and extends U.S. dollar dominance online,” stated President Donald Trump’s AI & Crypto Czar David Sacks. “Thanks to President Trump for his leadership on crypto & Senator Hagerty for authoring the bill.”
The passage of the GENIUS Act often is the clearest sign but that the U.S. is getting ready for a stablecoin and Bitcoin-powered future.
