In a historic milestone for the cryptocurrency industry, the U.S. House of Representatives passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on July 17, 2025, with a bipartisan vote of 308-122, following its Senate approval on June 17, 2025, by a 68-30 margin. This landmark legislation, which establishes the first federal regulatory framework for stablecoins like Tether’s USDT and Circle’s USDC, now heads to President Donald Trump’s desk for his anticipated signature. The GENIUS Act is poised to transform the $250 billion stablecoin market by providing regulatory clarity, enhancing consumer protections, and positioning the U.S. as a global leader in digital finance. As the crypto community awaits Trump’s approval, possibly during a ceremonial signing on July 18, 2025, at 14:30 EDT (20:30 EEST), this bill marks a pivotal moment for the future of digital assets.
What is the GENIUS Act?
The GENIUS Act, formally titled the “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025,” creates a comprehensive federal framework for regulating stablecoins - cryptocurrencies designed to maintain a stable value, typically pegged 1:1 to the U.S. dollar. Stablecoins, which facilitate billions in daily transactions for payments, trading, and decentralized finance (DeFi), have grown rapidly, with a market capitalization exceeding $250 billion. The bill’s key provisions include:
- Full Reserve Backing: Issuers must maintain 1:1 reserves with liquid assets, such as U.S. dollars or short-term Treasury bills, to ensure stability and protect users from financial risks.
- Consumer Protections: The act mandates transparency in reserve reporting and anti-fraud measures to build trust among users and investors.
- Regulatory Oversight: The Commodity Futures Trading Commission (CFTC) will primarily oversee stablecoin issuers, with additional roles for the Treasury Department and Federal Reserve, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing rules.
- Innovation Support: The bill allows banks, fintechs, and other entities to issue stablecoins, fostering competition and mainstream adoption in financial systems.
By establishing clear rules, the GENIUS Act aims to reduce regulatory uncertainty, protect consumers, and encourage broader adoption of stablecoins in global finance.
The Congressional Journey
The GENIUS Act’s path through Congress reflects both bipartisan support and significant challenges. The Senate passed the bill on June 17, 2025, with a 68-30 vote, including support from 18 Democrats, such as Senators Cory Booker (D-N.J.) and Adam Schiff (D-Calif.), alongside most Republicans. The vote followed intense negotiations, as some Democrats, led by Senator Elizabeth Warren (D-Mass.), raised concerns about potential conflicts of interest tied to President Trump’s crypto ventures, including his family’s involvement with World Liberty Financial, which issued the USD1 stablecoin. Despite these concerns, amendments strengthened consumer protections and addressed some AML issues, securing bipartisan backing.
In the House, the bill faced a rocky path during “Crypto Week,” a period dedicated to advancing digital asset legislation. On July 15, 2025, 12 conservative Republicans, including Representatives Andy Biggs (R-Ariz.), Marjorie Taylor Greene (R-Ga.), and Chip Roy (R-Texas), blocked a procedural vote, citing concerns over regulatory overreach and preferring to bundle the GENIUS Act with other crypto bills. After negotiations led by House Speaker Mike Johnson (R-La.) and direct intervention from President Trump, 11 of the holdouts switched their votes, allowing the bill to advance. On July 17, 2025, the House passed the GENIUS Act with 308 votes, including 206 Republicans and 102 Democrats, marking a significant bipartisan achievement.
Why the GENIUS Act Matters
The GENIUS Act addresses critical gaps in the regulation of stablecoins, which power over 60% of crypto transactions, with 90% pegged to the U.S. dollar. Its passage is a win for the crypto industry, which invested over $250 million in the 2024 election cycle to support pro-crypto candidates. The bill’s implications include:
- Enhanced Trust: Mandatory reserves and transparency reduce risks, making stablecoins more reliable for users and investors.
- Broader Adoption: By enabling banks and fintechs to issue stablecoins, the act paves the way for integration into traditional finance, potentially disrupting payment systems like Visa and Mastercard.
- U.S. Leadership: President Trump, who has called himself the “crypto president,” stated on Truth Social that the bill will put the U.S. “lightyears ahead” of global competitors like China and the EU in digital assets.
- Economic Impact: Treasury Secretary Scott Bessent projects the stablecoin market could grow to $2–3.7 trillion by 2030, driving innovation in payments and DeFi.
Critics, including Senator Warren and Representative Maxine Waters (D-Calif.), argue the bill lacks sufficient safeguards against conflicts of interest, particularly given Trump’s reported $57 million earnings from his USD1 stablecoin in 2024. They also warn that allowing tech giants like Amazon to issue stablecoins could weaken financial oversight.
What Happens Next?
The GENIUS Act awaits Trump’s signature, expected soon, possibly during a ceremony on July 18, 2025, at 14:30 EDT (20:30 EEST). Once signed, it will take effect in 18 months or 120 days after regulators issue final rules.
Conclusion
The GENIUS Act’s passage by the U.S. House on July 17, 2025, marks a historic moment for crypto. Awaiting Trump’s signature, it promises to bring clarity and trust to the stablecoin market, cementing U.S. leadership in digital finance.
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