Major Breakthrough for U.S. Stablecoin Regulatory Bill

From May to June 2025, the U.S. Senate engaged in intense negotiations surrounding the "Guiding and Establishing the American Stablecoin National Innovation Act" (, referred to as the "GENIUS Act" ). This bill, aimed at establishing the first federal regulatory framework for the $250 billion stablecoin market, underwent a dramatic turnaround from near failure to a bipartisan compromise, ultimately succeeding in moving to the full Senate debate stage with a vote result of 68 to 30.

Review of the Bill Advancement Timeline:

• March 2025: Republican senators propose a draft bill aimed at establishing a "federal + state" dual regulatory system.
• May 8: The first procedural vote unexpectedly failed, with the Democrats collectively opposing it citing "conflict of interest."
• May 15: The two parties held urgent consultations and introduced a revised bill, removing the controversial provisions.
• May 20: The amendment passed the key "motion to terminate debate" by 66 to 32.
• June 11: The Senate overwhelmingly passed the bill with a vote of 68 to 30, entering the final debate stage.

The key to this series of twists lies in the Republican Party's success in packaging the bill as a strategic tool to maintain "digital dollar hegemony," while the Democratic Party is wavering internally due to concerns about the financial risks brought by regulatory gaps. The Senate Majority Leader's lobbying remarks are highly provocative: "If the U.S. does not lead stablecoin regulations, China will fill the void with the digital yuan!"

The Core Regulatory Framework of the GENIUS Act

The bill aims to seek a balance between encouraging innovation and preventing risks, mainly including the following aspects:

1. Dual regulatory system: Stablecoins with an issuance scale exceeding 10 billion dollars are federally regulated, while those below 10 billion dollars may opt for state-level regulation.

2. 1:1 Reserve Requirement: Stablecoins are required to be fully collateralized with cash, short-term U.S. Treasuries, and other high-liquidity assets, and the reserves must be strictly segregated from operating funds.

3. Restrictions on Technology Companies Issuing Stablecoins: Non-financial technology companies must obtain approval from a specialized review committee to issue stablecoins.

4. Consumer protection measures: In the event of the issuer's bankruptcy, stablecoin holders can redeem their assets preferentially.

5. Anti-money laundering and transparency requirements: Include stablecoin issuers under the jurisdiction of the Bank Secrecy Act.

6. Provisions related to the presidential family: There is no explicit prohibition on members of Congress or relatives of the president participating in stablecoin businesses.

Controversy Focus

The biggest resistance during the advancement of the bill comes from the conflicts of interest caused by certain political figures' families deeply involved in the cryptocurrency industry. The main controversies include:

• A stablecoin issued by a certain family may gain legal status and see a significant increase in market value due to the passage of a bill.
• The act of indirectly selling opportunities to meet with political figures through cryptocurrency has sparked ethical controversies.
• The bill drafters have political donation ties with certain crypto companies.

Despite the two parties reaching a compromise on May 15 to remove some controversial provisions, some lawmakers still demand transparency regarding the relevant funding flows. This struggle is essentially a precursor to the midterm elections in 2026.

Potential Impact on the Market

If the "GENIUS Act" is finally implemented, it will trigger a structural change in the stablecoin market:

• Leading stablecoin issuers will directly obtain federal licenses due to their prior compliance with reserve requirements, further squeezing smaller issuers.
• Traditional financial institutions are expected to enter the crypto payment space by issuing stablecoins.
• It may alleviate the liquidity crisis of U.S. Treasury bonds in the short term, but could exacerbate the "maturity mismatch" problem in the long term.
• It may trigger a global regulatory "domino effect", reshaping the international monetary landscape.

Key Challenges for the Future

Although the Senate has passed the bill, it still needs to get through the following hurdles:

1. House Review: The Republicans have a narrow majority in the House, but there are discrepancies between the two versions that need to be reconciled.

2. Presidential Attitude: The president may exercise veto power due to deep ties to family interests and legislative details.

3. Judicial Challenges: Certain provisions may face review by the Supreme Court due to constitutional controversies.

The ultimate goal of the "GENIUS Act" is to extend the dollar hegemony into the blockchain realm. By tying U.S. debt to stablecoins, the U.S. is creating a "digital dollar empire." However, this strategy also faces risks: the development of decentralized finance or the acceleration of digital currency internationalization by other countries could impact the effectiveness of the act's implementation. Regardless of the final outcome, this act will have a profound impact on the global financial order for the next decade.