The U.S. Senate has approved a significant cryptocurrency bill, known as the “GENIUS Act,” in a 68-30 vote on Tuesday, June 17, 2025. This outcome saw 18 Democrats join the majority of Republican senators, delivering a notable victory to a digital asset sector that has long sought legitimacy through clear federal regulation.
The GENIUS Act Advances
The bill aims to establish consumer protections and impose guardrails specifically on stablecoins. Stablecoins are a type of digital asset designed to maintain a stable value, typically pegged to the U.S. dollar, making them less volatile than cryptocurrencies like Bitcoin. With Senate approval, the bill now proceeds to the House of Representatives for further deliberation and potential amendments before its final form is determined. Senator Bill Hagerty of Tennessee, a sponsor of the bill, expressed optimism on the Senate floor, stating, “With this bill, the United States is a step closer to being a global leader in crypto.”
Bipartisan Support and Industry Approval
The GENIUS Act garnered substantial bipartisan support in the Senate. The cryptocurrency industry has also voiced strong approval for this development. Summer Mersinger, CEO of the Blockchain Association, issued a statement commending the Senate’s action. Mersinger said, “By advancing bipartisan stablecoin legislation, the Senate has taken a critical step toward providing the legal and regulatory clarity needed to foster responsible innovation and protect consumers.” She further characterized the bill’s passage as a “win” for American developers and entrepreneurs within the digital asset space.
Opposition Emerges
Despite the significant bipartisan backing, the measure faced opposition from some senators. Senators Josh Hawley of Missouri and Rand Paul of Kentucky were the only two Republican senators to vote against the bill, citing differing reasons for their objections. Most Democratic senators also opposed the measure, primarily due to concerns regarding its perceived shortcomings in addressing potential conflicts of interest related to the Trump family’s crypto ventures.
Ethical Concerns Raised
Opposition from Democrats stemmed from arguments that the bill, in its current form, reportedly did not do enough to establish limits on the Trump family’s ability to profit from their cryptocurrency dealings. Senator Jeff Merkley, a Democrat from Oregon, issued a statement following the bill’s passage, criticizing this perceived loophole. Merkley stated, “Passing the GENIUS Act without strong anti-corruption measures stamps a Congressional seal of approval on President Trump selling access to the government for personal profit.” These concerns highlight a key point of contention during the legislative process.
Trump Administration’s Agenda
The bill’s advancement aligns with President Donald Trump’s stated desire for major cryptocurrency legislation to be passed before Congress adjourns for its regular summer recess in August. Trump has reportedly been vocal about wanting stablecoin legislation to reach his desk promptly. He issued a call on House Republicans late Wednesday to move “LIGHTNING FAST” to send a “clean” version of the Senate bill to his desk, urging “NO DELAYS, NO ADD ONS.” He also stated on social media that the Senate had passed an “incredible Bill” that will make America the “UNDISPUTED Leader in Digital Assets.” This strong presidential push indicates the administration’s high priority for this legislation.
Legislative Hurdles Ahead
The legislative schedule is reportedly packed, as Congress is also set to consider Trump’s “megabill,” which carries the bulk of his broader agenda covering critical areas such as taxes, border enforcement, and defense spending. This packed schedule suggests that while the President prioritizes crypto legislation, it competes for attention with other significant legislative items. The GENIUS Act faces further hurdles in the House, where lawmakers may try to attach a broader market structure bill or other amendments, which could complicate its final passage. Senator Kirsten Gillibrand, a co-author of the original GENIUS Act, reportedly acknowledged “a number of outstanding issues” to fix, while Senator Ruben Gallego, a Democrat, reportedly noted insufficient time for negotiation.
Provisions of the Bill
The GENIUS Act establishes a regulatory framework for payment stablecoins. It reportedly requires 1:1 dollar-backed reserves, monthly disclosures, and audits. The bill mandates clear federal or state licensing for approved issuers, with federally regulated oversight for issuers exceeding $10 billion in stablecoins. It explicitly states compliant stablecoins are not securities, removing them from SEC jurisdiction. The legislation also includes provisions aimed at strengthening consumer protection and national security, prohibiting algorithmic coins, and limiting rehypothecation and commingling of reserves. It also requires Congress members and Executive Branch officials to disclose stablecoin holdings over $5,000, and directs the Treasury to issue rules for monitoring suspicious transactions, though critics argue the bill initially omitted the President and his family from these restrictions.
Market Implications
The passage of the GENIUS Act is seen by some as removing a major barrier to entry—legal risk—for stablecoins and adding institutional-grade legitimacy to what was once a speculative fringe technology. Senator Bill Hagerty emphasized the bill would modernize the payment system, asserting payments could be settled almost instantaneously at much lower cost. He stated, “Stablecoins are a paradigm-shifting development that can bring our payment system into the 21st century.” Proponents argue it will cement US dollar dominance, protect customers, and increase demand for US treasuries.
