- The US Senate will vote on the GENIUS Act on June 17 to establish stablecoin regulations.
- The bill requires full dollar backing, audits for large issuers, and foreign issuer compliance.
- Passage could pave the way for a $2 trillion stablecoin market by 2028, per Treasury projections.
The United States Senate is set to hold a final vote on the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) on Tuesday, June 17. The legislation marks a crucial step in establishing a clear legal framework for stablecoins and their issuers. If passed, it will move to the House of Representatives for further deliberation, potentially ushering in a new era of stablecoin regulation in the U.S.
GENIUS Act Proposes Backing, Audits, and Oversight for Issuers
The GENIUS Act proposes that all stablecoins be fully backed by U.S. dollars or similarly liquid assets. This condition will help ensure stablecoins are fully backed on a 1:1 basis by the dollar, increasing their creditworthiness and limiting systemic risk. Issuers who oversee stablecoins with more than $50 billion in market capitalization will be required to undergo annual audits as well, introducing an element of transparency and investor protection.
The bill also sets out compliance obligations for foreign issuers of stablecoins, such as Tether. These entities would have to comply with U.S. standards if they intend to do business with American users-them being a sign of the government trying to have a say in the global stablecoin scene.
House Showdown Likely as STABLE Act Offers Alternative Path
This week’s Senate vote follows an earlier procedural vote that successfully advanced the GENIUS Act. If approved on Tuesday, the bill will be sent to the House of Representatives, where it could face negotiations with an alternative bill the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy Act). The House Financial Services Committee passed the STABLE Act out of committee in May, but differences remain between the two versions.
Key points of divergence include the extent of federal versus state regulatory authority and the management of oversight for foreign issuers. A reconciliation process will be necessary to form a unified legislative approach before a final federal law can be enacted.
The GENIUS Act has received backing from top policymakers, including U.S. President Donald Trump. Earlier, he emphasized the importance of passing stablecoin legislation by August, viewing it as pivotal to maintaining the U.S. dollar’s dominance in the digital asset era.
Treasury Secretary Scott Bessent also voiced strong support, stating earlier this week that stablecoin legislation could help the U.S. stablecoin market grow to over $2 trillion by 2028. Currently, the market cap for USD-backed stablecoins stands at approximately $252 billion, according to CoinGecko.
As the June 17 vote draws near, regulatory insiders and market players are paying close attention to events. The outcome has the potential not only to determine the future of stablecoins in the United States but also the direction of global digital asset regulation.
