U.S. Senate Passes Landmark Stablecoin Regulation Bill

Today, the U.S. Senate took a historic step forward by passing the GENIUS Act, a landmark bipartisan bill establishing clear federal standards for payment stablecoins like USDC. This achievement sets the stage for the United States to lead the world in responsible innovation while enhancing the safety and utility of digital dollars.

Dante Disparte, Chief Strategy Officer and Head of Global Policy & Operations at Circle, praised lawmakers for their leadership in achieving this milestone:

“The Senate’s passage of the GENIUS Act marks a historic moment for the future of money. We commend Senators on both sides of the aisle for working together to craft pragmatic, bipartisan legislation that supports innovation while protecting consumers and preserving the strength of the U.S. dollar in the digital age. Since 2021, Senate and House committees have held extensive hearings and markups on stablecoin legislation and the GENIUS Act is the product of those bipartisan and bicameral deliberations. We urge the House to act without delay and send this critical bill to the President’s desk so it can become law.”

The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—provides an opportunity to democratize finance for consumers and businesses around the world while enhancing American economic competitiveness. The bill sets consistent standards for reserve backing, transparency, and consumer protections, paving the way for greater trust, safety, and innovation in the digital asset space. Once enacted, the legislation would help cement U.S. leadership in digital asset technology and reinforce the dollar’s enduring global role.

The GENIUS Act promotes payment system optionality, rules-based competition, and broadens consumer and merchant choice when it comes to better, faster, and cheaper payments. Key provisions of the bill include:

• Federal Licensing and Oversight: Creates a federal regulatory regime for payment stablecoin issuers under the supervision of banking regulators.
• State-Federal Coordination: Preserves pathways for state-chartered entities to issue stablecoins with strong oversight and interoperability requirements.
• Reserves and Transparency: Mandates 1:1 backing with high-quality liquid assets, such as cash and short-term U.S. Treasuries, along with public disclosures and attestations.
• Consumer Protections: Establishes robust standards for redemption rights, custody, and cybersecurity.
• Foreign Issuer Restrictions: Stablecoin issuers organized under foreign laws are prohibited unless they comply with U.S. regulations.
• AML and Sanctions Compliance: Issuers must adhere to anti-money laundering and sanctions compliance protocols.
• Prohibition on Yield or Interest: Stablecoin issuers are generally prohibited from offering yield or interest on their stablecoins. This measure is designed to distinguish stablecoins from traditional bank deposits and securities as well as mitigate systemic risks associated with interest-bearing digital assets.
• Dollar Dominance: Reinforces the role of the U.S. dollar in digital finance, bolstering its global leadership.

The GENIUS Act represents years of deliberation and input from government, financial, technology, and other stakeholders. Circle welcomes this progress and remains committed to working with lawmakers from both parties and both chambers as the legislative process moves forward.