GENIUS Act Bill
The GENIUS Act Bill was passed by the US Senate in June 2025. This bill aims to regulate stablecoins, which are cryptocurrencies backed by reserves. The passage signifies a major shift in the US government’s approach to digital assets. The bill’s approval has led to a notable increase in the market capitalisation of stablecoins and the shares of cryptocurrency firms.
What Are Stablecoins?
Stablecoins are digital currencies designed to maintain a stable value. They are typically pegged to traditional currencies like the US dollar. This backing makes them less volatile than other cryptocurrencies. As of 2025, the market capitalisation of stablecoins reached approximately $251.7 billion, reflecting a 22% increase from the previous year.
Key Features of the GENIUS Act
The GENIUS Act introduces several regulatory measures for stablecoins. It mandates compliance to prevent money laundering. It also requires that all stablecoins be fully backed by reserves. Monthly audits of these reserves will ensure transparency and accountability.
Impact on the Cryptocurrency Market
Following the Senate’s approval of the GENIUS Act, shares of Circle Internet Group surged . The stock rose by 33.82% on the day of the vote and continued to climb in pre-market trading. This increase reflects investor confidence in the future of stablecoins under the new regulatory framework.
US Treasury’s Perspective
US Treasury Secretary Scott Bessent has expressed optimism about the future of stablecoins. He predicts that the market could grow to $3.7 trillion by the end of the decade. Bessent argues that stablecoins could reinforce the supremacy of the US dollar by becoming purchasers of US Treasuries.
Comparison with the STABLE Act
The STABLE Act is another piece of legislation aimed at regulating stablecoins. While it shares some similarities with the GENIUS Act, it focuses on limiting reserve backing to specific assets. The STABLE Act also places oversight under the Office of the Comptroller of the Currency.
Trump Administration’s Influence
The Trump administration has played important role in promoting stablecoins. President Trump has publicly supported the GENIUS Act, calling it a means to position the US as a leader in digital assets. His family’s interests in cryptocurrency have also been brought into light in discussions surrounding the bill.
Global Context and De-dollarisation
The rise of stablecoins comes amid global discussions about de-dollarisation. Several countries are exploring alternatives to the US dollar for international trade. The GENIUS Act aims to solidify the dollar’s dominance by encouraging the use of dollar-pegged stablecoins.
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