Washington D.C. — In a major policy shift with global implications, the US Senate passed the GENIUS Act on Wednesday, signaling strong federal support for the regulation of stablecoins. The bill passed by a 68-30 vote and now moves to the House of Representatives, where a related bill, the STABLE Act, is already under consideration.
This legislation could become a regulatory foundation for reserve-backed cryptocurrencies, aligning digital assets with broader financial oversight and stability mechanisms.
What Is the GENIUS Act?
The GENIUS Act (Guaranteeing Essential National Infrastructure Using Stablecoins) aims to regulate stablecoins — cryptocurrencies pegged to fiat currencies like the US dollar — and mandate transparency and collateralization of these digital tokens.
It introduces provisions for:
- Federal licensing of stablecoin issuers
- Mandatory reserves in liquid assets
- Real-time audit disclosures
- Oversight by the Federal Reserve and U.S. Treasury
The bill also bans algorithmic stablecoins that do not have fully-backed reserves.
Global Crypto Markets React
Markets responded immediately. Circle, the issuer of USD Coin (USDC), saw its stock price jump 33.82% post-vote. By Friday, pre-market trading surged another 24.75%, taking the price to $211.87 a share.
Investors viewed the Senate’s move as a legitimisation of stablecoins, boosting confidence in crypto-backed fintech firms.
Global Implications for Crypto
The GENIUS Act could serve as a template for global crypto regulation, especially as Europe, Asia, and the Middle East work on frameworks of their own.
Experts say this could set a global regulatory precedent, influencing frameworks in countries like:
- India, where the RBI has resisted private stablecoins
- Japan, where trust bank-based stablecoins are being piloted
- UAE and Singapore, which are aiming to attract crypto capital with clear rules
A Turbulent Backdrop: Iran’s Nobitex Hacked
Amid the regulatory breakthrough, Iran’s largest crypto exchange Nobitex was reportedly hacked by a group named Gonjeshke Darande (Predatory Sparrow).
According to Reuters, the hackers stole $90 million and claimed responsibility via Telegram. The group, believed to have links with Israel, adds geopolitical complexity to an already volatile digital asset landscape.
The attack also raises new questions about cybersecurity and the need for international regulation of crypto exchanges.
The STABLE Act Awaits in the House
While the GENIUS Act moves forward, its House counterpart, the STABLE Act, focuses on:
- Enhanced consumer protection
- State-federal coordination
- Anti-money laundering (AML) checks
The House Financial Services Committee is expected to fast-track the STABLE Act, possibly harmonising it with the GENIUS framework in a reconciled final bill.
Industry Voices React
Jeremy Allaire, CEO of Circle, hailed the move, saying:
“This is the clearest sign yet that digital dollars are here to stay — but responsibly.”
Other stakeholders, including Coinbase and Paxos, welcomed the legislation as a long-awaited regulatory roadmap that could expand institutional adoption of digital currencies.
What Lies Ahead?
If both the GENIUS and STABLE Acts are passed and merged, the US will become the first major economy with a full-fledged stablecoin law.
This could:
- Attract global crypto investments
- Improve consumer safety
- Reduce the risks of shadow banking through crypto
Call to Action
For crypto users, regulators, and financial institutions, now is the time to watch legislative developments closely. The GENIUS Act is not just a domestic win — it may redefine crypto regulation worldwide.
Stay informed with crypto policy updates and monitor how this shapes the future of digital finance.