Crypto revolution in the USA: GENIUS Act heralds a new era of stablecoins!

Crypto revolution in the USA: GENIUS Act heralds a new era of stablecoins!

On May 21, 2025, the US Senate passed the GENIUS Act, a new law regulating stablecoins, by a vote of 66 to 32. These digital assets are pegged to traditional fiat currencies, particularly the US dollar. Senate lawmakers and crypto industry representatives are celebrating the vote as a “historic victory” for the future of digital financial technologies. However, the passage of the law is still subject to the approval of amendments and a final vote.

The GENIUS Act, short for Guiding Emerging National Innovations for Unified Standards, defines a comprehensive regulatory framework for stablecoins and requires them to be fully backed by liquid and safe assets such as US government bonds. Issuers that reach market capitalizations above $50 billion are required to register with federal banking regulators and conduct annual audits. In addition, strict anti-money laundering (AML) regulations must be adhered to.

Market reactions and forecasts

Bitwise CIO Matt Hougan sees the law as the potential start of a multi-year bull market for digital assets. He predicts that the market capitalization of stablecoins, currently over $236 billion, could grow to as much as $2.5 trillion. The crypto industry reacted overwhelmingly positively to the passage of the GENIUS Act; Industry associations and stablecoin issuers praised the move as necessary for innovation and a safe environment for investors.

However, there are also critical voices. Critics warn of possible backdoors for central bank digital currencies (CBDC) and are calling for more transparency in the regulatory processes. Senator Elizabeth Warren expressed concerns that the bill ignores evidence of President Trump's past ties to the crypto industry. These political tensions show that the issue has not only technical but also profound economic and social implications.

Future developments

Another aspect of the GENIUS Act affects technology companies. Meta and Google are not allowed to issue their own stablecoins to prevent market concentration. Senator Mark Warner emphasized that a clear regulatory framework for innovation is essential to ensure both consumer protection and competitiveness. International observers suspect that other regions, including the EU, Singapore and Japan, may adapt their own frameworks to the US model.

In summary, the passage of the GENIUS Act shows that the USA is striving to take a pioneering role in the area of ​​stablecoins and digital assets. The reactions from the crypto industry and the political implications will be crucial for the further development of the market in the coming weeks and months.

For more details on this topic, see reporting by The shareholder and CVJ.