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Senate Advances GENIUS Act to Regulate Stablecoins Despite Conflict Concerns

By granting stablecoin issuers a formal framework in a $246 billion market, the GENIUS Act raises questions over the Trump family’s crypto earnings

A banner for Circle Internet Group, the issuer of one of the world’s biggest stablecoins, hangs on the front of the New York Stock Exchange (NYSE) to celebrate the company’s IPO in New York City, U.S., June 5, 2025.  REUTERS/Brendan McDermid/File Photo
Tether, which issues the stablecoin USDT, accounts for 62% of the total stablecoin market.
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Overview

  • On June 5, Senate Democrats joined Republicans to clear a filibuster and move the GENIUS Act toward final passage by a simple majority vote
  • The bill would establish federal oversight of stablecoins, aiming to legitimize a $246 billion market and potentially expand it toward $2 trillion by 2028
  • A provision would require banks to repay stablecoin holders before other customers if an institution fails, sparking consumer protection and subsidy concerns
  • World Liberty Financial, majority owned by the Trump family and issuer of the USD1 stablecoin, stands to gain transaction fees and interest on reserve holdings
  • Crypto firms spent over $200 million in the 2024 election cycle to support pro-crypto candidates, with several senators who advanced the Act having received industry contributions