Stablecoin News – On July 11, 2025, the U.S. House of Representatives is set to vote on the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) during its ‘Crypto Week,’ a pivotal moment for stablecoin regulation.
Passed by the Senate on June 17 with a 68-30 bipartisan vote, the GENIUS Act establishes a federal framework requiring stablecoin issuers to maintain 1:1 reserve backing with liquid assets like cash or U.S. Treasuries and publish monthly audits.
This marks the first time stablecoin legislation has cleared a congressional chamber, reflecting a shift toward legitimizing digital currencies.
The bill, supported by the crypto industry’s $250 million in 2024 election spending, aims to enhance transparency and consumer protection in the $253 billion stablecoin market, where Tether (USDT) and Circle’s USDC dominate.
It addresses concerns about reserve mismanagement, a criticism faced by Tether in the past, and aligns with the Trump administration’s rollback of restrictive crypto policies.
However, critics like Senator Elizabeth Warren argue the bill lacks robust safeguards, citing risks of fraud and market instability.
The GENIUS Act’s potential passage could boost institutional adoption, with firms like Ripple leveraging partnerships with BNY Mellon for compliant stablecoins like RLUSD. The framework also limits non-financial tech giants from issuing stablecoins without regulated partners, impacting firms like Walmart.
If approved, the bill could send stablecoins mainstream, but reconciling House and Senate versions may delay final enactment.
The global implications are significant, as the U.S. competes with regions like the EU and Hong Kong in shaping digital currency standards.
With stablecoin transactions hitting $28 trillion in 2024, the GENIUS Act could solidify the U.S. dollar’s digital dominance, though concerns about systemic risks persist, as noted by the Bank for International Settlements. The vote’s outcome will shape the future of stablecoins in global finance.
