The GENIUS Act: U.S. Senate’s New Stablecoin Framework & What It Means

The U.S. Senate passed the GENIUS Act on June 17, 2025, with a one-sided 68-30 margin.

The historic bill creates America's first stablecoin regulatory regime.

The bill places some licensing obligations on stablecoin issuers. Federal and state regulators

will have joint responsibilities under the new regime. Companies will be required to secure

permits before issuing payment stablecoins to the public.

The legislation takes stablecoins out of the regime of securities law. It is this move that

provides regulatory certainty which crypto firms have been lobbying for decades.

However, issuers are subject to Bank Secrecy Act anti-money laundering regulations.

Big tech firms are subject to restrictions on issuing stablecoins independently. They need to

collaborate with supervised banking entities or set up compliant subsidiaries.

This provision is for resolving monopoly issues in the digital payment space.

The bill prevents Congress members and top government officials from issuing stablecoins

throughout their periods of public service. This ethics provision bars future possible conflicts

of interest.

State regulators have to prove that their systems meet federal standards. Annual certification

mandates make states equal in oversight.

GENIUS Act is a huge leap towards mainstream acceptance of crypto. It provides regulatory

certainty for institutional investment and digital payments innovation.