The Guiding and Establishing National Innovation for US Stablecoins Act, known as the GENIUS Act, now faces a key vote in the United States Congress, and the stakes for the cryptocurrency industry are high.
If the US Senate, the upper chamber of the country’s Congress, passes the GENIUS Act on Tuesday, it would move the country one step closer to regulating stablecoins, scoring a big win for the crypto industry and for the Trump administration, which is supporting the legislation. The bill’s next stop is the House of Representatives, where it will undergo further scrutiny from lawmakers.
The Senate voted 68-30 to advance the bill on June 11, opening the GENIUS Act up to amendments before a final vote. Several Democrats joined a majority of Republicans to win the cloture vote.
In the lead-up to the vote, industry voices have expressed a hopeful outlook. Coinbase Chief Legal Officer Paul Grewal sounded a positive note on X ahead of the vote, highlighting its potential to bring regulatory clarity. Not everyone is on board, however.
Critics argue the GENIUS Act lacks adequate safeguards, particularly around the potential for self-dealing by entities authorized to issue stablecoins. Senator Elizabeth Warren has been among the most vocal opponents, warning that the bill could “actively facilitate” misuse tied to Trump’s crypto businesses.
Among key proposed amendments to the legislation is a provision aimed at preventing elected officials and their families from issuing stablecoins, a move intended to address some of the concerns about conflicts of interest.
If enacted, the GENIUS Act could significantly reshape the landscape for US crypto regulation. Industry stakeholders told Cointelegraph the legislation may help solidify the dollar’s role in the digital economy and lay the foundation for a more structured global financial framework.
Related: Senators plan to amend GENIUS Act to address Trump family’s stablecoin
A bridge between TradFi and the blockchain
The GENIUS Act would establish an oversight system for stablecoins, allowing issuers to register with the US government. In addition, issuers would be required to have 1:1 backing for their stablecoins, face regular audits and submit to Anti-Money Laundering regulations.
According to Roshan Robert, CEO of OKX US, the GENIUS Act is a “strong signal” that the US government is taking a pragmatic approach to digital asset innovation. The Act creates “a vital bridge for traditional finance to explore blockchain-powered payments and settlement.”
“For OKX, clear regulation in key markets like the U.S. empowers us to build responsible, transparent infrastructure for global users,” Robert said. “The GENIUS Act not only supports licensed innovation but also lays the groundwork for interoperability between centralized and decentralized systems — a future we see as inevitable.”
Stablecoins are often seen as a key bridge between traditional finance and digital assets. These fiat-pegged tokens, most of which are linked to the US dollar, could allow people around the world to easily send money across borders with fewer fees, and pay for goods at a variety of merchants.
Related: What is the GENIUS Act? How it could reshape US stablecoin regulation
A ‘rulebook for the next global financial system’
The legislation could also set the stage for the regulation of decentralized, programmable money, potentially a blow to the prospects of a central bank digital currency (CBDC) in the US.
“The stablecoin bill is equally important,” said Mike Cahill, CEO at Douro Labs. “With major financial institutions already exploring issuance, clear federal guardrails will legitimize stablecoins as a new category of programmable money — integrated into payments, settlement, and even treasury management.
“If the U.S. gets this right, it won’t just lead the crypto market — it will write the rulebook for the next global financial system.”
Related: GENIUS Act may cement US dollar dominance in digital economy
The GENIUS Act could refute de-dollarization
Since Trump imposed tariffs on trade partners, discussions around de-dollarization, a potential global shift away from reliance on the US dollar as the global reserve currency, have gained traction. Supporters of the bill said it could strengthen the dollar’s position as most stablecoins are pegged to the dollar, potentially enhancing its influence in the digital economy.
According to DefiLlama, the two largest stablecoins in the crypto space are pegged to the dollar — Tether’s USDt (USDT) and Circle’s USDC (USDC). Together, these tokens make up $217.5 billion or 86.4% of the total stablecoin market cap of $251.7 billion.
“Talk of de-dollarization misses the bigger point: Dollar-backed stablecoins are the new 21st-century financial power tool,” said Bill Sebell, executive director of XDC Foundation. If the GENIUS Act were to pass, now “anyone with a smartphone can hold a compliant digital dollar, increasing reach and relevance for USD at the exact moment critics predict its decline.”
Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
