Senate passes bill for federal oversight of stablecoins, potentially leading to surge in market

From Yahoo Finance: 2025-06-17 17:49:00

The Senate passed the GENIUS Act, a bill for federal oversight of stablecoins. Circle’s stock has soared 400% since its IPO. Bank of America CEO Brian Moynihan is exploring stablecoin prospects. Big banks and companies like Amazon and Walmart are also looking into stablecoins.

The bill empowers oversight of stablecoin issuers by the Federal Reserve and OCC. Issuers must hold reserves in cash or US Treasurys, undergo audits, and disclose holdings. Stablecoins must be redeemable at face value but cannot pay interest. Proponents tout them as safe havens from crypto volatility.

The GENIUS Act establishes a regulatory framework for US stablecoins. Concerns about risks remain, but proponents believe the bill protects financial stability and addresses consumer protection issues. Some Democrats worry about tech giants launching stablecoins, but the bill requires Treasury approval for any such venture.

If the bill clears the House, it could lead to a surge in stablecoin entrants. Treasury Secretary Scott Bessent predicts the US stablecoin market could exceed $2 trillion by 2028. The legislation aims to create a common regulatory floor for all stablecoin issuers, ensuring transparency and stability in the industry. The global stablecoin market is valued at $250 billion, per DeFiLlama. Senate passes bill; House may attach it to broader crypto regulation. Trump aims to sign stablecoin legislation before August recess. Stay updated on stock market news and events with in-depth analysis from Yahoo Finance. Read the latest financial and business news from Yahoo Finance.

Read more: Senate passes stablecoin bill, a major victory for the crypto world