The U.S. Senate has officially passed the GENIUS Act, a landmark bill regulating stablecoins—digital assets typically pegged to the U.S. dollar.

The legislation passed with bipartisan support and now moves to the House of Representatives, marking a historic moment as the first major cryptocurrency legislation to clear the Senate.

According to Politico, the GENIUS Act sets a precedent for future digital asset laws expected later this year.

The GENIUS Act requires stablecoins to be fully backed by liquid assets like U.S. dollars, while also mandating annual audits for issuers with reserves exceeding $50 billion. These rules aim to stabilize the growing use of stablecoins for payments, trading, and digital settlements.

Per Reuters, corporations such as Amazon and Walmart may be impacted by issuance restrictions if they fail to meet privacy and risk standards outlined in the bill.

The bill notably bars members of Congress—but not the President—from profiting from stablecoin issuance. It also prioritizes consumer protection by giving holders of stablecoins senior claims over other creditors if an issuer collapses.

These protections are seen as critical as stablecoins become more integral to U.S. and global financial ecosystems, as outlined in a recent AP report.

With Senate passage confirmed, the bill heads to the House where potential amendments or reconciliations with the existing STABLE Act could occur.

Lawmakers may also consider folding parts of the GENIUS Act into broader legislation like the CLARITY Act, expanding oversight to the entire digital asset sector. The House’s decision could set the tone for how digital dollars operate in commercial, retail, and international markets for years to come.

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