The US Senate has passed the GENIUS Act, a bill that would establish the country’s first federal regulatory framework for stablecoins - digital tokens pegged to the US dollar.
The legislation, which still needs approval from the House of Representatives and President Trump, would bring oversight to an industry long seen as lacking clear rules.
The bill, passed with bipartisan support, outlines how stablecoin issuers must operate, including holding dollar reserves, undergoing regular audits, and publishing redemption policies.
Larger issuers would fall under federal supervision, while smaller firms would be overseen by state regulators.
The law would also prohibit members of Congress from profiting from stablecoin investments, though not the President.
If passed, the legislation could spark a wave of new issuers.