Stablecoin bill heads for final vote in the U.S. Senate

The U.S. Senate approved, with a clear majority, a groundbreaking bill to regulate stablecoins.

The U.S. Senate voted with a clear majority voted in in favor of a groundbreaking bill to regulate stablecoins. With 66 votes for and 32 against, the so-called Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was passed, an initiative by Senator Bill Hagerty.

The bill was initially blocked by several Democratic senators due to unresolved objections and legal details. But after recent tweaks it managed to win broad support. The measure now moves to the final stage of parliamentary deliberations. Senator Cynthia Lummis expects that the proposal will be definitively passed on May 26.

The GENIUS Act defines stablecoins as crypto-tokens pegged to “stable values” like the U.S. dollar. Once a stablecoin reaches a market capitalization of more than ten billion dollars, it would come under the supervision of the Federal Reserve. Projects below that threshold would fall under the oversight of individual American states.

Currently only two stablecoins meet that threshold: Tether (USDT) and Circle (USDC), which together dominate the vast majority of the market.

Senator Hagerty emphasized the strategic importance of his legislation: “This law creates a safe and pro-innovation regulatory framework that enables innovation and supports the president's mission to make America the global hub for cryptocurrency.”

With the GENIUS Act nearing final approval, the U.S. takes a big step toward clear rules in the fast-growing digital currency market.