The Senate has officially passed the GENIUS Act on Tuesday, the 24th of June 2025, with a 68-30 vote. It is going to establish official federal guidelines for Stablecoins and a pathway for privately owned companies to issue digital dollars with the blessings of the federal government. The bill is also going to increase the legitimacy of digital currencies. If you are someone who wants to know more about the GENIUS Act, the following article is for you. It brings you everything we know so far about the GENIUS Act and what the supporters of the bill say about it.
What Does The New GENIUS Act Mandate Companies To Do?
The new GENIUS Act is going to set fixed standards for the issue of stablecoins, which are a type of cryptocurrency. The value of stablecoins will stay the same as the state-issued currency, unlike Bitcoin’s value, which fluctuates a lot. It requires the companies to create stablecoins to hold dollars, Treasurys, or assets that are actually considered safe, equal to the value of the coins they have issued. This is going to act as a safeguard against the cryptocurrency collapse that leaves customers with nothing but worthless data.
What Does The GENIUS Act Mean For The Stablecoins Industry?
The new GENIUS Act is going to have a significant positive impact on the stablecoin industry. Stablecoins came into existence in order to solve the problems with cryptocurrencies that are not preferred because of how their prices fluctuate wildly almost every day. The GENUS Act might result in the stablecoins industry of the United States witnessing an eightfold growth to over $2 trillion in the next decade. You need to note that the GENIUS Act still has to be passed by the House of Representatives and signed by President Donald Trump to become a law.
What Did Sen. Mark Warner Says In Support Of The GENIUS Act?
Sen. Mark Warner, who is a Democrat from Virginia, was one of the 18 Democrats who actually supported the GENUS Act. In one of his statements he made in support of the Act, he mentioned how the Stablecoins have been operating in a regulatory grey area. This put not only customers but the entire market and even national security at risk. He further added that the GENIUS Act is going to bring positive changes by creating guardrails for responsible innovation. It is going to set high standards for issuers and will rein in potential abuse from big techs and bad actors.
Why Was Elizabeth Warren Criticized For The GENIUS Act?
Sen. Elizabeth Warren, who’s a Democrat from Massachusetts, mentioned that the President of the United States, Donald Trump, as well as his family, have high stakes in the crypto markets. She criticized the act for doing nothing to control the political conflicts of interest that pose.
President Donald Trump has a stake in World Liberty Financial, which is a company that actually launched its own stablecoin called USD1. According to the critics, it will be easy to bribe the President using the coins.
Elizabeth Warren, in her statement against the GENIUS Act, mentions that if it is passed, USD1 will become a coercive tool to pay off the corrupt President. She mentioned that it will basically be a financial instrument blessed by the Government of the United States. Warren also stated that the GENIUS Act is going to offer more opportunities to reward those who buy Trump’s coins. These rewards may include tariff exemptions, pardons, and government appointments.
It is important to note that the GENIUS Act only prohibits Congress as well as the Executive Branch from owning stablecoins. However, the President as well as the Vice President are not subject to any such restrictions.
