Particle.news
Download on the App Store
23 ARTICLES
·
1h ago

Senate Approves GENIUS Act to Establish Federal Stablecoin Rules

It moves to the House for reconciliation with the STABLE Act this week.

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
A representation of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • The act requires stablecoin issuers to back tokens one-to-one with liquid assets such as U.S. dollars or short-term Treasury bills and mandates monthly reserve disclosures.
  • Shares of Circle Internet Group and Coinbase Global jumped by more than 15% and 11% respectively after the Senate vote, reflecting market optimism.
  • Citigroup and Treasury Secretary Scott Bessent forecast that stablecoin issuance could drive up to $1 trillion in new U.S. Treasury purchases and grow the market to over $3.7 trillion by 2030.
  • Critics including Senator Elizabeth Warren warn the act fails to address potential conflicts of interest stemming from President Trump’s financial ties to World Liberty Financial and his family’s crypto holdings.
  • The House version of stablecoin legislation, the STABLE Act, contains different regulatory provisions and must be reconciled with the Senate’s GENIUS Act before final approval.