The U.S. Senate's passage of the GENIUS Act marks a watershed moment for stablecoins, offering long-awaited regulatory clarity that could unlock trillions in institutional capital. Industry leaders hailed the bipartisan vote as a breakthrough for financial innovation, with fintechs and banks now poised to accelerate adoption.
Yet the legislation arrives under a cloud of controversy: President Donald Trump, expected to sign the bill, stands to benefit personally through World Liberty Financial, a firm his family owns that plans to launch a stablecoin called USD1.
Critics warn of a deepening conflict of interest as Trump’s administration simultaneously rolls back crypto enforcement while his financial ties to the sector grow. World Liberty Financial earned him over $57 million last year alone.
Still, industry leaders are choosing to concentrate on how stablecoins will revolutionize things like cross-border payments, 24/7 settlements, and global liquidity.
‘Hotly Awaited‘
"A federal stablecoin framework has been hotly awaited by the private financial sector, so it's about time," Alex Buelau, co-founder of Rayls, told Benzinga.
He noted that the lack of regulatory guidance has left fintechs, banks, and payment providers in a gray area. Now that the GENIUS Act passed with a 68-30 vote, Buelau expects "institutions won't hesitate to jump, capitalizing on the opportunities that stablecoins have to offer, particularly when it comes to cross-border payments, 24/7 settlements and enhancing global, on-chain liquidity.”
Gerry O'Shea, Head of Global Market Insights at Hashdex, praised the Senate's approval. It’s "a monumental step toward the broad adoption of bitcoin and many other crypto assets,” he said.
He expressed optimism about the bill's trajectory, stating, "We're optimistic the House will follow the lead of the Senate and the President will sign stablecoin legislation into law this year."
O'Shea predicted a multi-trillion-dollar stablecoin market, driven by traditional financial institutions leveraging the new legal clarity.
The GENIUS Act requires stablecoin issuers to back tokens with liquid assets like U.S. dollars or short-term Treasury bills. It also requires them to disclose reserve compositions monthly.
This framework addresses long-standing industry demands for clear rules. To get that clarity, crypto lobbyists spent over $119 million supporting pro-crypto candidates in the 2024 elections.
Jason Allegrante, Chief Legal & Compliance Officer at Fireblocks, cautioned that implementation remains critical.
"The passage of the GENIUS Act is a breakthrough but let's not mistake it for the finish line," he said. "What matters now is whether regulators can turn that clarity into confidence and into a framework the industry can actually use."
RedStone COO Marcin Kazmierczak projects a stablecoin market cap of $400 billion by the end of 2025. The hope is that will balloon to $3.5 trillion by 2030.
He noted that 86% of financial institutions are infrastructure-ready, shifting focus to full-scale adoption.
The bill's passage follows a failed attempt last year when a House-approved stablecoin bill stalled in the Democrat-controlled Senate.
Stablecoins already boast a $250 billion market cap and monthly transfer volumes of $5.1 trillion as of December. That’s more than Visa and Mastercard combined.
What’s Next
Eighteen Democratic senators sided with the Republican majority in the 53-47 Senate to pass its version of the bill. It will now be sent to the House of Representatives for potential revisions before Trump can sign. Republican Sens. Josh Hawley and Rand Paul were the only members of their party to oppose the measure.
Most Democrats opposed the bill, citing concerns that it does nothing to address Trump's growing stake in the crypto space.
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