According to Reuters, the U.S. House of Representatives passed the groundbreaking GENIUS Act on Thursday with a decisive vote of 308:122, marking the first time Congress has approved comprehensive stablecoin legislation and sending the historic bill to President Donald Trump for signature.
The bill establishes a federal regulatory framework for the $250 billion stablecoin market, requiring issuers to maintain 100% high-quality liquid asset reserves, undergo monthly audits, and register with federal or state regulatory agencies. The legislation received strong bipartisan support, with 206 Republicans and 102 Democrats backing the measure.
"This is a watershed moment for the digital asset industry," Steven Goldfeder, creator of Arbitrum and CEO and co-founder of Offchain Labs, told Blockhead. "The biggest benefit is clarity—it eliminates many legal ambiguities that have hindered institutional entry."
This vote concluded a tumultuous "crypto week," with conservative Republicans initially obstructing legislation before reaching an agreement with President Trump. Earlier this week, House Speaker Mike Johnson had to cancel a parliamentary vote after a dozen conservatives launched a procedural rebellion, demanding that the stablecoin bill be packaged with broader crypto legislation.
The drama subsided after holdouts met with Trump at the White House, ultimately agreeing to advance the GENIUS Act as a standalone bill while bundling a ban on central bank digital currencies with the annual defense authorization act.
Under the new framework, stablecoin issuers must choose between a federal license from the Office of the Comptroller of the Currency or state-level oversight. The legislation requires issuers to back their tokens with cash, Treasury bills, or other approved high-quality assets, with mandatory monthly third-party audits to verify reserves.
The bill also prohibits algorithmic stablecoins—digital tokens maintained through code rather than asset backing—following the $60 billion collapse of TerraUSD in 2022.
"Markets like the UAE have demonstrated that well-defined rules can accelerate innovation and adoption," said Omar Elassar, Head of Global Strategic Partnerships for the Middle East at Animoca Brands, in comments to Blockhead. "With the U.S. now in sync, we're entering a phase where stablecoins can not only support Web3 but the future of global finance."
The crypto industry, which invested heavily in pro-crypto candidates during the 2024 election, praised the legislation as validation of their lobbying efforts. The House also passed the CLARITY Act, which delineates regulatory jurisdiction over digital assets between the SEC and CFTC, sending it to the Senate.
However, Democratic critics expressed concerns about potential conflicts of interest and insufficient consumer protection. Maxine Waters, the top Democrat on the House Financial Services Committee, warned that the legislation is inadequate.
"By passing this bill, Congress will tell the world that Congress is willing to accept corruption and allow foreign companies to buy influence," Waters said during floor debate.
Some Democrats also raised concerns about the Trump family's crypto investments, reportedly increasing their wealth by billions as crypto regulations are relaxed. The White House denied any conflict of interest, stating that Trump's assets are held in trusts managed by his children.
The legislation's passage is expected to unleash significant institutional capital that has been waiting for regulatory clarity. Large financial institutions have been hesitant to enter the stablecoin space due to regulatory uncertainty, but the new framework provides the compliance structure they've been seeking.
The bill's impact extends beyond stablecoins, potentially accelerating the convergence of digital assets and traditional finance. With clear rules, banks, brokers, and other financial institutions can begin developing crypto products and services without fear of enforcement actions.
Last month, the Senate overcame initial Democratic opposition to approve stablecoin legislation. With President Trump's support and the House's overwhelming approval, the GENIUS Act is poised to be signed into law in the coming days, solidifying the U.S. position as a global leader in digital asset regulation.
