Stablecoin Regulatory Bill
On June 17, local time, U.S. President Trump highly praised the Senate's passage of the stablecoin regulatory bill and urged the House of Representatives to take swift action to make it law soon. The bill, titled the "Guidance and Establishment of the Nation's Innovation for United States Stablecoins Act" (GENIUS Act, commonly known as the 'Genius Act'), marks a legislative breakthrough in the field of stablecoins by the U.S. Congress.
"The Senate just passed an incredible bill that will make the U.S. the undisputed leader in digital assets—there's no competition, it's sheer genius!” Trump stated on social media. He emphasized that digital assets will be a key area for the future, and the U.S. should take a leading role. He added, “We are talking about massive investments and significant innovations. I hope the House will also act at lightning speed to pass a 'clean' 'Genius Act' without delays or additions.”
The bill passed in the Senate with a vote of 68 to 30, showing a rare bipartisan consensus on digital asset legislation. Senate Banking Committee Chairman Tim Scott stated, “With the GENIUS Act, we have established basic rules for an industry that has long lacked regulation and proven that bipartisan cooperation can still deliver substantial results.”
‘Genius Act’
The bill aims to establish a clear federal regulatory framework for stablecoins pegged to the U.S. dollar. Stablecoins, typically backed by dollar reserves, experience lower price volatility and are widely used in cross-border payments, decentralized finance (DeFi), and blockchain settlements. In recent years, as stablecoin market capitalization has rapidly increased, concerns over their compliance and financial stability have grown.
The Trump administration has made it clear that it will promote America's leadership in the global digital assets field. Trump himself has repeatedly mentioned digital assets such as Bitcoin, Ethereum, and stablecoins, and expressed concerns over current de-dollarization trends, emphasizing the need for faster institutional development in this area.
According to informed sources, the House Financial Services Committee is prepared to take over the bill and accelerate the review process. Committee Chairman French Hill stated, “Today's Senate vote brings us one step closer to establishing a robust regulatory framework.”
However, the bill has faced opposition from some Democratic lawmakers who argue that it falls short of adequately guarding against potential risks and lacks stringent oversight provisions. They also question the Trump family's interests with crypto assets. Some lawmakers are concerned the bill could be misused for self-interest in the current political climate.
The White House stated that Trump's personal assets are managed by a trust for his children, ensuring no conflict of interest, and that the bill represents a sincere effort to establish future rules for the digital economy of the entire country.
Market Impact
Bolstered by the bill's passage and Trump's statements, major cryptocurrencies saw a temporary rise on Tuesday, with Bitcoin briefly exceeding $65,000, and tokens from stablecoin issuers Tether and Circle experiencing capital inflows. In tandem, U.S. tech stocks also showed a slight uptick, reflecting improved investor forecasts for the digital asset regulation.
If the bill is passed by the House and signed into law by Trump, the U.S. would become the first major economy to enact comprehensive stablecoin regulatory legislation, potentially leading a new wave of global digital currency policy competition.
