The US Congress has passed the GENIUS Bill, the country’s first major standalone cryptocurrency legislation, with strong support in both chambers.

The House of Representatives approved the bill with a 308-122 vote, following Senate approval last month.

The bill sets regulations for stablecoins, requiring issuers to maintain reserves, disclose holdings, and follow anti-money laundering rules.

It signals a softer stance on crypto regulation compared to earlier Biden administration efforts, though critics warn it may let nonbanks issue stablecoins with fewer controls.

The bill follows heavy crypto industry lobbying, which spent over US$100 million on Congress, raising concerns from consumer groups about undue influence.

Backed by President Donald Trump, the bill awaits his signature to become law, with more crypto legislation expected on oversight and a potential US digital dollar.

🔗 Source: NPR

🧠 Food for thought

1️⃣ The U.S. finally addresses its fragmented crypto regulatory history

The GENIUS Act represents a dramatic shift from the historically fragmented approach to cryptocurrency regulation in the United States.

Since 2011, U.S. agencies have classified crypto assets in contradictory ways, such as property by the IRS, commodities by the CFTC, securities by the SEC, and money transmitters by FinCEN1.

This regulatory confusion created significant compliance challenges for businesses, with a single cryptocurrency potentially falling under multiple regulatory frameworks simultaneously1.

The stablecoin legislation marks the first time Congress has passed a comprehensive standalone framework specifically addressing any cryptocurrency category, potentially setting a precedent for future digital asset regulation.

FinCEN’s enforcement actions against crypto companies highlight the challenges of the previous approach, such as when Ripple Labs was fined $700,000 in 2015 for failing to register as a Money Services Business2.

The bipartisan vote (308-122) indicates a growing recognition that regulatory clarity is essential for the industry to develop responsibly while protecting consumers.

2️⃣ Stablecoins represent a strategic bridge between traditional finance and crypto innovation