House Passes GENIUS Act, Backing Stablecoin Regulation

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The U.S. House of Representatives has passed the bipartisan GENIUS Act, marking a major step forward in creating a federal regulatory framework for stablecoins. Senator Tim Scott called the bill a “milestone” in digital asset oversight.

In a major development for digital finance, the U.S. House of Representatives has passed the Generating Uniform and Non-Discriminatory Innovation in Stablecoins (GENIUS) Act, a bipartisan bill designed to establish a clear regulatory framework for stablecoins. The legislation marks a significant step toward federal oversight of digital currencies and could shape the future of the U.S. financial system.

The GENIUS Act aims to provide consistent rules for stablecoin issuers across all states, reducing regulatory confusion and enhancing consumer protection. Stablecoins are digital assets that are typically pegged to the value of fiat currencies like the U.S. dollar. They are increasingly being used in both domestic and international transactions, but concerns about transparency, risk management, and oversight have prompted lawmakers to act.

The bill lays out clear guidelines on who can issue stablecoins, how reserves must be managed, and what standards must be followed to ensure safety and trust. Under the proposed rules, only licensed and federally approved institutions would be allowed to issue payment stablecoins. These issuers would also be subject to routine audits and transparency requirements.

Senator Tim Scott, a key supporter of the bill, hailed its passage as a milestone. “The GENIUS Act is a commonsense, bipartisan step toward building a safe and modern financial system,” he said. “It brings clarity to an industry that desperately needs it while protecting American consumers and preserving innovation.”

The House vote reflects growing recognition among lawmakers that digital assets are here to stay. While previous attempts to regulate stablecoins stalled due to political divisions and industry pushback, the GENIUS Act’s bipartisan backing suggests that consensus may be forming around the need for structured oversight.

Supporters of the bill argue that the absence of federal regulation has created uneven standards across states and increased the risk of abuse or financial instability. By introducing nationwide rules, the GENIUS Act seeks to encourage innovation while preventing bad actors from exploiting regulatory gaps.

The bill now heads to the Senate, where it will face further debate and potential amendments. Still, its advancement through the House is a notable achievement and could accelerate broader regulatory efforts in the digital asset space.

If passed into law, the GENIUS Act could set the tone for how the U.S. approaches stablecoin integration into the financial system, with ripple effects likely to be felt across fintech, banking, and blockchain sectors.

As digital currency continues to evolve, policymakers are under pressure to strike the right balance between regulation and innovation and the GENIUS Act may be the clearest sign yet that Washington is ready to act.