In a significant step toward regulating digital assets, the U.S. House of Representatives approved the GENIUS Act on Thursday, a bill focused on stablecoins backed by the U.S. dollar. The legislation has been moved to President Donald Trump who is anticipated to sign it into a law. This is a significant step in the overall bid to offer structure to the rapidly evolving digital asset market.
The GENIUS Act was passed by the House with a 308–122 vote to establish clear rules for U.S. dollar-backed stablecoins. It mentions reserve requirements and requires issuers to make monthly disclosures.
Stablecoins are cryptocurrencies that are directly backed by traditional assets such as the US dollar with the aim of providing price stability that allows for rapid digital payment.
GENIUS Act’s Impact on The Crypto Sector
The GENIUS Act is projected to have a substantial impact not only in the U.S. but also on the global digital asset market. Vedang Vatsa the founder of Hashtag Web3 told Outlook Money that the passing of the act is likely to increase stablecoin use.
“The GENIUS Act’s passage may help create clearer rules in the U.S. This can build trust, speed up stablecoin use, and encourage other countries to follow suit,” Vatsa said.
“It could also lead to greater transparency, better regulations, and stronger global cooperation on digital assets. As one of the world’s largest markets, U.S. policy changes often influence global trends. This move may shape how startups raise funds, how banks work with crypto, and how people use digital money daily.”
Two More Bills Move to Senate for Approval
Alongside the GENIUS Act, the House also passed two other crypto-related bills which are now headed to the Senate, according to newsagency Reuters. The Clarity Act, which was cleared by the House with a 294–134 vote, aims to define when a digital asset qualifies as a security or commodity, seeking to resolve long-standing disputes over regulatory oversight. The House also approved the Anti-CBDC Surveillance State Act by a 219–210 vote. The bill aims to prohibit the creation of a U.S. central bank digital currency that raises concern over financial privacy.
As these legislative measures progress, it's important to look at how the Senate responds. The results could influence the future of innovation and compliance in the global cryptocurrency market.
