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GENIUS Act Advances to House Poised to Set Federal Stablecoin Rules

A bipartisan measure setting reserve and disclosure requirements for stablecoins has triggered market rallies; fresh conflict-of-interest concerns persist.

Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group's IPO, in New York City, U.S., June 5, 2025.  REUTERS/Brendan McDermid/File Photo

Overview

  • The Senate approved the GENIUS Act on June 17 by a 68-30 vote, marking a bipartisan breakthrough in federal cryptocurrency oversight.
  • Under the bill, stablecoin issuers would be required to back tokens one-to-one with liquid assets such as U.S. dollars or short-term Treasurys and publish monthly reserve disclosures.
  • The legislation now moves to the House, where lawmakers must reconcile it with the STABLE Act and respond to President Trump’s call for swift, amendment-free passage.
  • Crypto stocks rallied after the vote, with Circle and Coinbase shares jumping double digits as Treasury Secretary Scott Bessent forecast a potential $3.7 trillion stablecoin market that could reinforce dollar dominance.
  • Critics have flagged that ethics safeguards do not cover the president and vice president, raising conflict-of-interest questions over the Trump family’s World Liberty Financial stablecoin, USD1.