admin First Federal Framework for Dollar-Pegged Coins
In a decisive 68–30 vote, the U.S. Senate approved the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), creating the first federal guardrails for dollar-pegged stablecoins. The legislation charges the Treasury Department with oversight, mandating full reserve backing, monthly attestations and robust anti-money-laundering controls.
Broad Authority for Stablecoin Issuers
Under the new law, banks, fintech firms and retailers may apply to issue their own regulated stablecoins. Treasury Secretary Scott Bessent told senators that the market could expand from today’s roughly $250 billion to over $2 trillion within a few years under clear, government-backed rules.
Political and Ethical Controversy
Senate Democrats failed to add a provision barring the president from profiting on crypto ventures, even though President Trump revealed $57 million in token sales last year.
“Republicans have rubber-stamped Trump’s crypto corruption, allowing personal profit from digital-asset deals,”
Senator Jeff Merkley (D-Ore.) blasted.
Industry Titans Eye Stablecoin Payments
Major corporations, Amazon, Walmart and Shopify, are reportedly exploring stablecoin rails to cut fees and settlement times. A Deutsche Bank study found that stablecoin transaction volume hit $28 trillion in 2024, outpacing Visa and Mastercard combined.
House Faces Diverging Proposals
Now the GENIUS Act moves to the Republican-controlled House, which is developing its own STABLE Act. Key differences include whether oversight sits solely with Treasury (Senate) or is split among the Fed, OCC and CFPB (House). Lawmakers anticipate a lengthy conference process to reconcile those approaches.
Bipartisan Frustrations with Crypto Legislation
“Stablecoins should have been the easiest start,” lamented Senator Cynthia Lummis (R-Wyo.) at Bitcoin 2025. “It’s been murder to get 18 Democrats to cross the aisle.”
Senator Bill Hagerty (R-Tenn.) agreed: “Passing this took months of blood, sweat and tears.”
Protecting U.S. Dollar Dominance
Proponents argue the GENIUS Act secures consumer safeguards, spurs innovation and prevents foreign stablecoins from diluting the dollar’s global role.
“This law will protect consumers, enable responsible innovation and safeguard the U.S. dollar,”
said Senator Kirsten Gillibrand (D-N.Y.).
Legacy Finance Adapts
JPMorgan has launched JPMD, a bank-issued digital deposit token on Coinbase’s Base blockchain. Meanwhile, asset managers like Fidelity and Grayscale have updated SEC filings to include staking provisions for SOL, signaling growing institutional integration of digital assets.
Next Steps
As the House debates its stablecoin framework, industry watchers await final rules that could usher in a new era of digital-dollar payments -streamlining commerce, reducing costs and reshaping the global financial landscape.
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