The U.S. Senate is expected to vote on the Guiding and Establishing National Stablecoins (GENIUS) Act before Memorial Day, May 26, 2025.
Senate Majority Leader John Thune confirmed the planned vote, marking a significant moment in the effort to bring more structure to the stablecoin industry. The bill proposes new rules for how stablecoins are backed and managed, aiming to create safer conditions for users while still allowing innovation to grow.
Introducing Oversight and Reserve Rules
The GENIUS Act focuses on two main areas: reserve requirements and federal oversight. If passed, it would require stablecoin issuers to hold enough liquid assets to back every token in circulation. This is intended to reduce the risk of sudden losses for holders and improve public trust in digital assets tied to fiat currencies like the U.S. dollar.
The legislation also outlines a regulatory framework, which would involve federal agencies playing a more active role in supervising stablecoin operations.
This could include clearer licensing processes and regular audits to ensure compliance. These measures are designed to prevent fraud and protect consumers from unexpected failures in the system.