GENIUS Act passes, cementing stablecoins’ legitimacy

The House of Representatives voted in favor of the long-awaited Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) today, in a 307-122 vote (with three votes uncounted as of writing). President Trump has expressed support for the bill and is expected to sign the bill tomorrow during a signing ceremony. The passage of the first major crypto regulation in the US is a landmark moment for the crypto space and comes as part of “Crypto Week.”

The bill, which the Senate passed on June 17 in a bipartisan 68-30 vote, establishes a regulatory framework for stablecoins, which, according to DefiLlama data, have a $258.5 billion market cap.

The space has exploded recently and is experiencing what many call a “stablecoin summer,” notably with stablecoin giant Circle’s mammoth IPO in June and everyone from Amazon to Walmart exploring use cases.

Senator Bill Hagerty, who spearheaded the bill, said earlier that the legislation brings the country “one step closer to becoming the global leader in crypto,” and celebrated its passage in a X post:

Amanda Tuminelli, executive director and CLO of DeFi Education Fund, said that today’s passage of stablecoin legislation marks a historic achievement for the United States, a resounding victory for innovation, and a major step toward establishing a clear regulatory framework for digital assets. 

“Stablecoins are essential for DeFi. DeFi Education Fund is grateful to the lawmakers in both the Senate and House, along with their dedicated staff, for their commitment to properly distinguishing between centralized and decentralized systems and technologies. Thank you for your efforts in advancing this landmark legislation. We look forward to President Trump signing it into law,” she added. 

While many hail this as a watershed moment for stablecoins, some also argue that the bill isn’t about unleashing open innovation.

“It’s a calculated move to lock in the dollar’s dominance while boxing out the more radical edges of crypto,” Alexander Blume, CEO of Two Prime, said.

Blume said it also enshrines the dollar as king, as stablecoins must be backed by USD and Treasurys.

“That’s great for US hegemony and incumbents like Circle, but it slams the door on more experimental models like bitcoin-backed or algorithmic stablecoins,” he said.

It also bans interest-bearing stablecoins, “a clear concession to both big banks and large stablecoin incumbents, who want to hoard the yield and upside for themselves,” Blume said.