The U.S. Senate yesterday passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act by a vote of 68–30, officially approving the first nationwide legal framework for U.S. dollar-pegged stablecoins.
What the bill includes
The law requires full backing of stablecoins with cash or Treasury bills (T-bills) on a 1:1 basis, monthly attestations, and AML (anti-money laundering) controls — all under the supervision of the Department of the Treasury.
Treasury Secretary Scott Bessent told lawmakers that the new regulations could enable the stablecoin market to exceed $2 trillion within a few years, compared to around $250 billion today. Last year, stablecoins handled $28 trillion in on-chain transactions — more than Visa and Mastercard combined.
Wider adoption will likely be supported by U.S. banks and major retailers. Bank of America has stated it will “consider” issuing its own token once the law is enacted, while Walmart and Amazon are analyzing the creation of branded stablecoins to reduce transaction fees.
Support for the dollar and Treasury bonds
Because the law mandates 1:1 backing with USD or Treasuries, the changes will put pressure on traditional payment systems, while also channeling new demand toward short-term U.S. government bonds that will back the tokens. This represents a fundamentally different approach for traditional banks, which currently are only required to hold fractional reserves of client deposits in cash.
Will Ethereum benefit from adoption?
Since roughly half of all stablecoins currently operate on the Ethereum network, the platform could see a sharp increase in transfer activity, which in turn would boost demand and accelerate Ethereum token burn rates.
Next legislative steps
With the Senate having completed its work on the bill (as of June 17), its fate now depends on the House of Representatives’ schedule. If the House adopts the Senate version, the bill could reach the White House between July 29 and 31, 2025 — the last legislative days before the summer recess — giving the Treasury 120 days to draft implementing rules by late November.
However, if the House insists on its own version (or bundles the bill into a broader crypto package), a conference committee will be required, pushing final passage to early or mid-September 2025, after Congress reconvenes. Even then, the President’s signature would still be expected no later than September 19 — well within the law’s 18-month implementation window.
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