Wall Street's calling it the most 'genius' piece of regulation since Dodd-Frank originally appeared on TheStreet .
In a significant feat for the cryptocurrency industry, the U.S. Senate passed the GENIUS Act on June 17 with a vote of 68-30, marking the first major digital asset regulation to pass the upper chamber of Congress.
The legislation establishes a federal structure for stablecoin issuance, projected to reach a $2 trillion market cap within the next three years.
A stablecoin is a type of cryptocurrency that maintains a stable value over time, equivalent to a fixed amount of money. Its value is usually tied to a more stable asset, such as the US dollar or gold.
GENIUS Act
The GENIUS Act, identifying Guaranteed and Enforceable Neutral Intermediaries for U.S. Stablecoins, establishes guidelines for how companies can issue and back their stablecoins.
The bill requires issuers to hold one-to-one reserves in cash or short-term Treasury securities to guarantee stability. It also involves stablecoin issuers in verifying these reserves every month. The bill will also provide protections to consumers and prohibit tech companies and government officials from launching their tokens while in office.
Elizabeth Warren (D-Mass.) , the ranking member of the Senate Banking Committee, stated on May 19 that she would oppose the GENIUS Act because it would weaken consumer safeguards, leaving people vulnerable to scams and unnecessary fees.
In the Senate Floor meeting, she said, "While a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all."
Her main line of opposition was that the GENIUS Act, which was being voted on, was just days after President Trump hosted a private dinner and VIP White House tour for top investors in his meme coin, TRUMP, which she said would further fuel President Trump's crypto corruption.
Shortly after, the bipartisan negotiators addressed the ethics, transparency, and national security concerns set within the original bill, and then 18 Democrats supported the measure.
The most notable of them all was Sen. Bill Hagerty (R-Tenn.), who said the "bill will cement U.S. dollar dominance , it will protect customers, and it will drive demand for U.S. Treasuries."
However, the bill now advances to the GOP-led House, where its companion legislation, the STABLE Act, is also gaining momentum. If both chambers can agree, it would be historic and potentially be the first complete digital asset regulation in the United States.
Wall Street believes that this could be a reform after Dodd-Frank. Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, was a response to the 2008 financial crisis. It was meant to improve financial institution governance, limit risky conduct, and protect consumers from abuse.
Crypto regulation catching up
The bill is being celebrated as a major win for the crypto industry as a whole, and particularly in the United States, where regulation has struggled to keep pace with innovation , especially under the Biden era.
Nathan Allman, CEO and Founder of Ondo Finance, told TheStreet Roundtable:
" This legislation provides long-awaited clarity around the treatment of digital assets, laying the foundation for increased institutional participation. With this clear signal from U.S. policymakers, we anticipate a surge in confidence and engagement from market participants—both domestically and internationally—who have been waiting for a framework they can rely on. By establishing a clear and comprehensive framework, the U.S. is now setting the pace, not just participating in the conversation."
Allman believes the GENIUS Act makes a strong statement, similar to its impact on traditional financial institutions for decades, that the U.S. is ready to define the guidelines for the road ahead in digital assets.
Sidney Powell, CEO & Co-Founder of Maple Finance said:
"The GENIUS Act is a signal that finance is moving onchain. Clear stablecoin rules are the catalyst institutional capital has been waiting for. With trust in reserves and compliance frameworks now codified, the path is open for asset managers to scale digital capital markets with confidence."
Roshan Robert, CEO of OKX U.S. said the GENIUS Act is a strong signal that U.S. lawmakers are taking a pragmatic approach to digital asset innovation. "By targeting stablecoins, one of crypto's most proven use cases, it creates a vital bridge for traditional finance to explore blockchain-powered payments and settlement," he said.
"We should expect this to spur a new wave of innovation - not just more issuers, but purpose-built stablecoins designed for real-world finance, from remittances to on-chain settlement. It also opens the door for more people to understand, learn about, and engage with crypto in a way that feels accessible and relevant to their everyday lives," he added.
Wall Street's calling it the most 'genius' piece of regulation since Dodd-Frank first appeared on TheStreet on Jun 18, 2025
This story was originally reported by TheStreet on Jun 18, 2025, where it first appeared.
