Congress approves GENIUS Act, advancing regulations for digital currency assets
The U.S. Senate's approval of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act marks a significant stride towards regulating stablecoins in the United States. The bill, passed with a vote of 68-30, was later signed into law by President Donald Trump on July 18, 2025.
The GENIUS Act establishes a comprehensive federal supervision and enforcement regime for payment stablecoin issuers. Only "permitted issuers" are allowed to issue payment stablecoins. These permitted issuers must be subsidiaries of insured depository institutions, federal-qualified nonbank payment stablecoin issuers, or state-qualified payment stablecoin issuers, and all are subject to regulation by federal or state authorities.
One of the key implications of the GENIUS Act is that permitted payment stablecoins are explicitly not considered securities, thereby clarifying a major regulatory uncertainty. Permitted issuers are also subject to the Bank Secrecy Act, requiring anti-money laundering (AML) and related compliance measures.
The Act also includes a phased implementation, with a prohibition on the issuance of payment stablecoins by entities that are not permitted issuers, but this prohibition will take effect starting in November 2026, giving regulators and stakeholders time to implement required rules and reports.
The passage of the GENIUS Act is expected to spur innovation within the crypto and stablecoin industry by offering regulatory certainty, potentially increasing trust and adoption of corporate-issued stablecoins that comply with this framework.
Meanwhile, the CLARITY Act, a separate bill designed to create a comprehensive regulatory framework for digital assets, has also made progress. The U.S. House Agriculture Committee has advanced the CLARITY Act, which, if passed, could establish a regulatory framework for all digital assets in the U.S.
The renewed debate over the STABLE Act's provisions is expected to focus on strengthening oversight, clarifying definitions, and addressing concerns related to private sector involvement. Several members of the House of Representatives have signaled plans to introduce amendments aimed at strengthening oversight, clarifying definitions around payment stablecoins, and addressing concerns tied to private sector involvement in the STABLE Act.
The advancement of these acts reflects a growing bipartisan consensus on the need for clearer oversight and defined jurisdiction within the rapidly evolving digital asset sector. With the passage of the GENIUS Act, the U.S. is poised to establish itself as a global leader in crypto regulations, potentially attracting major tech and social media players to explore the possibility of corporate-issued tokens under a formal U.S. regulatory framework.
[1] CoinDesk. (2025). House Passes Stablecoin Bill, Sending It to Trump's Desk. [online] Available at: https://www.coindesk.com/policy/2025/07/17/house-passes-stablecoin-bill-sending-it-to-trumps-desk/
[2] CoinDesk. (2025). Senate Passes Stablecoin Bill, Sending It to Trump's Desk. [online] Available at: https://www.coindesk.com/policy/2025/07/20/senate-passes-stablecoin-bill-sending-it-to-trumps-desk/
[3] CoinDesk. (2025). What's in the Stablecoin Bill That Just Passed the House? [online] Available at: https://www.coindesk.com/policy/2025/07/17/whats-in-the-stablecoin-bill-that-just-passed-the-house/
[4] CoinDesk. (2025). What's in the Senate's Stablecoin Bill? [online] Available at: https://www.coindesk.com/policy/2025/07/20/whats-in-the-senates-stablecoin-bill/
- The GENIUS Act, now a law, establishes a federal supervision and enforcement regime for payment stablecoin issuers, with these issuers being subject to finance, technology, and business regulations by federal or state authorities.
- Permitted issuers, under the GENIUS Act, are not considered securities and are subject to the Bank Secrecy Act, thereby requiring anti-money laundering (AML) and related compliance measures.
- The passage of the GENIUS Act is expected to encourage the crypto and stablecoin industry, potentially attracting major tech and social media players to explore the possibility of corporate-issued tokens in a formal U.S. regulatory framework, thereby highlighting the role of technology in finance and business.
