In a historic move that could reshape the digital asset landscape, Congress has passed the GENIUS Act, marking the first major cryptocurrency legislation in U.S. history.

The bill, which focuses on establishing a regulatory framework for stablecoins—cryptocurrencies pegged to stable assets like the dollar—cleared both chambers amid bipartisan support and intense lobbying from the crypto industry. According to WIRED, this legislation could unleash a wave of new stablecoins, potentially transforming how Americans engage with digital finance, though it also raises fresh concerns about political entanglements, including those involving former President Donald Trump.

The GENIUS Act, formally known as the Greater Economic National Innovation and U.S. Stablecoin Act, aims to provide clarity and legitimacy to stablecoin issuers by setting federal standards for reserves, transparency, and consumer protections. Proponents argue it will foster innovation while curbing risks like those seen in past crypto collapses. As reported by The New York Times, the crypto sector views this as a milestone victory, having invested around $250 million in the 2024 election cycle to influence lawmakers.

Bipartisan Push Through Senate Hurdles

The bill’s journey began in the Senate, where it passed on a decisive 68-30 vote in June, with Republicans and a bloc of Democrats uniting to advance it. NBC News highlighted this as a landmark bipartisan effort, establishing the first regulatory structure for stablecoin issuers and signaling a shift toward mainstream acceptance of digital currencies. The vote was a boost for the industry’s legitimacy, as noted by Investopedia, which described it as crypto-friendly legislation promoting stablecoins’ growth.

However, the path wasn’t without drama. In the House, a right-wing rebellion initially stalled progress, with ultraconservative Republicans staging a mutiny over procedural issues. CBS News detailed how the House eventually passed the bill after overcoming this resistance, making it the first comprehensive crypto law to emerge from Congress.

House Drama and Procedural Twists

The House vote came after a tumultuous week, where committee leaders expressed frustration with deals struck between GOP leadership and hard-liners. Politico’s live updates captured the chaos, noting how routine votes turned contentious, nearly derailing the bill. Despite the setbacks, the House advanced the GENIUS Act alongside related crypto market structure measures, as covered by The Block, which reported on the narrow procedural victories that kept the legislation on track.

Business Insider observed that the bill’s momentum sent crypto prices surging, with Bitcoin and Ethereum seeing gains amid optimism. Trump and GOP allies claimed credit for securing the votes, underscoring the political stakes.

Implications for Stablecoins and DeFi

At its core, the GENIUS Act regulates asset-backed cryptocurrencies, potentially paving the way for more institutional adoption. CNBC explained that it could mean clearer rules for investors, encouraging the development of new stablecoins while addressing concerns over yield-bearing variants. CoinDesk’s opinion piece suggested the bill might eliminate murky areas in decentralized finance (DeFi) by prohibiting certain yield-generating stablecoins, a move that could stabilize the sector but limit some innovations.

Experts warn of downsides, including regulatory overreach. ABC News outlined the bill’s provisions, such as mandatory audits and federal oversight, which could burden smaller players. WIRED pointed to potential complaints about Trump’s crypto ties, given his vocal support for digital assets during his campaign.

Future Outlook and Industry Shifts

The passage represents a turning point, positioning the U.S. as a leader in crypto regulation amid global competition. As The New York Times noted, it advances the industry’s primary objectives while setting the stage for further reforms. For insiders, this means heightened compliance demands but also opportunities for growth in a now-legitimized market.

Yet, challenges remain. The bill’s implementation will test regulators’ ability to balance innovation with safety. As crypto evolves, the GENIUS Act could either catalyze a boom or invite scrutiny if enforcement falters. Industry leaders are already gearing up for the next battles, eyeing expansions into broader digital asset frameworks.