The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) has passed the Senate Banking Committee with bipartisan support, advancing the first comprehensive federal framework for stablecoin regulation. A full Senate vote is expected before the summer recess.
The bill establishes reserve requirements mandating that stablecoins be backed 1:1 by cash, Treasury bills, or other high-quality liquid assets. Monthly attestations from independent auditors and real-time reserve reporting are required for issuers with over $10 billion in circulation.
State-chartered stablecoin issuers with less than $10 billion in circulation can operate under state regulation, preserving the dual banking system. Larger issuers fall under Federal Reserve oversight and must obtain a federal license.
Circle (USDC issuer) and Paxos have publicly supported the framework, while Tether has expressed concerns about the audit requirements, which exceed its current disclosure practices. The bill could reshape the competitive landscape by favoring transparent, US-based issuers.
Industry analysts view the bill as the most likely crypto legislation to become law in 2026, as it has broader bipartisan support than more comprehensive crypto market structure bills that remain contentious.
