Stablecoins Are Now Officially Legal in the US! Genius ACT Bill Passes Vote

The United States Senate has officially passed the Genius ACT, signaling a fundamental shift in how stablecoins will be regulated and used across the country. 

The vote, which concluded with a strong 68 to 30 outcome, brought together members from both major parties. 

This bipartisan backing marks one of the clearest signs yet that Washington is beginning to take the future of digital currencies seriously. For investors, developers, and businesses alike, the news signals the beginning of a more secure and regulated environment for stablecoin adoption.

What Is the Genius ACT and Why It Matters

The Genius ACT (short for “Guaranteeing Essentials for Nationwide Issuance and Use of Stablecoins”) provides a federal framework for the issuance, trading, and oversight of stablecoins. 

These digital tokens are usually tied to the value of the US dollar and serve as a steady alternative to the volatility found in traditional cryptocurrencies like Bitcoin and Ethereum.

Stablecoins act as a practical bridge between the crypto space and traditional finance. By allowing users to move funds in and out of digital markets with ease, they simplify transactions and reduce reliance on banks. 

With the Genius ACT now passed in the Senate, the United States is laying the foundation for a new digital financial structure that could reshape everything from retail payments to international finance.

Read also: The Evolution of Crypto Regulation: Balancing Innovation and Security

Industry Leaders React to the Vote

The crypto industry responded positively to the Senate’s decision. Liat Shetret, a senior advisor at blockchain intelligence firm Elliptic, called the legislation a “pivotal moment” that places the United States at the forefront of digital economic policy. 

Amanda Tuminelli, from the DeFi Education Fund, described it as a victory for both innovation and regulatory responsibility.

Their enthusiasm reflects a larger trend. Industry leaders have long called for clear rules around stablecoins, arguing that unclear or conflicting regulations have stifled innovation. 

With the Genius ACT, they now see an opportunity for legitimate, regulated growth that can attract more investors and institutional players.

What Happens Next?

Although the Senate has passed the Genius ACT, the bill’s journey is not over. It must still go through the House of Representatives. 

Some House Republicans are pushing to merge the bill with broader legislation that covers the structure of the wider crypto market. This approach could help it pass more easily but also introduces new challenges and delays.

There is also a political angle. Some Republicans are urging President Donald Trump to sign the bill into law by early July, ahead of potential campaign announcements and economic policy speeches. Whether this timeline is realistic remains uncertain.

Read also: Is Crypto a Commodity? Exploring the Ongoing Debate

Privacy Concerns and Opposition

Not all lawmakers are on board with the bill. A group of progressive Democrats, including Senator Elizabeth Warren, joined forces with Republican senators like Josh Hawley and Rand Paul to oppose the Genius ACT. 

Their concerns center around privacy. Specifically, they worry that the bill could allow large technology companies to issue their own stablecoins and use them to track consumer spending habits.

These fears are shared by many privacy advocates, who argue that financial data must remain separate from the influence of major corporations. 

The potential for consumer data to be used for marketing or surveillance purposes remains a sensitive issue that future amendments may need to address.

Economic and Market Implications

Beyond its effects on crypto policy, the Genius ACT could reshape parts of the broader US economy. Treasury Secretary Scott Bessent highlighted the possibility of increased demand for US Treasury bonds. 

Since many stablecoins are backed by these bonds, greater usage could lead to lower borrowing costs for the government. In a time when federal debt continues to climb, this added demand may prove beneficial for public finances.

Private sector interest is also growing. Banks, Wall Street firms, and retailers are exploring how stablecoins could reduce transaction costs and generate revenue through customer deposits. 

Companies like Amazon and Walmart are among those expected to experiment with stablecoin-based payment systems in the near future.

If the Genius ACT becomes law, analysts expect a flood of investment from traditional finance and commercial sectors. This could bring trillions of dollars into the digital asset ecosystem and redefine how payments and savings are managed in the years ahead.

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FAQ

What is the Genius ACT?

The Genius ACT is a federal bill that sets legal standards for the issuance and trading of stablecoins in the United States.

Has the Genius ACT become law?

Not yet. It has passed the Senate but must still be approved by the House of Representatives and signed by the President.

Why is the Genius ACT important?

It provides a clear regulatory framework for stablecoins, which could boost innovation and attract more institutional investment in the crypto space.

What are the main concerns about the bill?

Critics worry that the bill could allow big tech companies to issue stablecoins and track consumer spending, raising privacy concerns.

How could the Genius ACT affect the US economy?

It may increase demand for US Treasuries, lower borrowing costs, and lead to broader adoption of stablecoins by banks, retailers, and tech companies.