US Senate Approves Historic Bill to Regulate Stablecoins!

US Senate Approves Historic Bill to Regulate Stablecoins!

Today, June 18, 2025, the US Senate took a significant step in cryptocurrency regulation by passing a bill to regulate stablecoins. The bill, known as the 'GENIUS Act', received a vote of 68-30, showing a bipartisan majority. The new law aims to promote the use of stablecoins pegged to stable assets such as the US dollar, while providing a framework for the legal status and supervision of these cryptocurrencies.

Stablecoins have gained traction in recent years, particularly with the growth of Tether (USDT) and USD Coin (USDC). Tether's market capitalization has increased from around $4 billion to an impressive $156 billion since the start of 2020. These cryptocurrencies create the possibility of making real-time transfers, but also raise concerns about their possible use for money laundering and other illegal activities.

Important provisions of the draft law

One of the central provisions of the GENIUS Act requires stablecoin providers to back their cryptocurrencies with liquid assets, such as US dollars or short-term US treasuries. Providers are required to publish a monthly statement of their reserves to ensure transparency and consumer protection. The US Federal Reserve and other financial authorities will receive expanded supervisory powers to ensure that financial stability is not threatened.

In addition, a ban on algorithmic stablecoins without appropriate reserves will be established. This regulation is a direct response to the collapse of Terras UST in 2022, which has increased calls for stricter regulations. The Conference of State Bank Supervisors (CSBS) has also called for changes to further minimize financial risks.

Next steps for legislation

The bill must now be approved by the House of Representatives before being sent to the President for his signature. Analysts see the Senate committee's approval as a step forward in regulating the cryptocurrency industry. However, there are also concerns that excessively strict regulations could inhibit innovation and squeeze out smaller emitters. Tightening the rules for stablecoin reserves could also make the introduction of decentralized stablecoins more difficult.

The new law could have global implications, especially compared to the MiCA legislation already introduced in the EU, which provides clear guidelines for stablecoins. The developments in the USA are almost certainly a signal for many other countries to align their regulations.

Cryptocurrency-friendly members of Congress raised over $119 million in campaign contributions last year, indicating that lobbying in this area is producing fruitful results.

Overall, the passed bill is an important step towards ensuring the regulation of stablecoins in the US, thereby creating a regulatory environment that promotes the growth of the cryptocurrency industry while minimizing risks.

For more information on the details of the law and its implications, read more on fu.w.ch and crypto-insiders.de.