The US Senate has passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in a 68 to 30 vote on June 17.

The landmark bill sets the first federal regulations for dollar-pegged stablecoins in America and has been lauded by the crypto industry.

“The GENIUS Act will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar, said Senator Kirsten Gillibrand, one of the bill’s sponsors.

Having passed the Senate, the bill still needs to pass the Republican controlled House before it can be made into law.

JUST IN: Senate passes GENIUS Act for federal stablecoin regulation, by a vote of 51-23.

Now moves to the House.

Greenlight for Stablecoins

The GENIUS Act was introduced by Senator Bill Hagerty in February to regulate the $260 billion stablecoin market. Speaking after the vote on Tuesday, Hagerty said:

“This is going to open the door for innovation in America like we’ve never seen before. This is an inflection point moving the USA into the digital age,”

He added that the bill was the first step in making sure that the dollar remains the dominant currency of the world. By moving payments onto the blockchain, this will create more efficiency and take a lot of the cost out of the system, he added.

The GENIUS Act has PASSED in the Senate! pic.twitter.com/aWEgYKXNgf

Treasury Secretary Scott Bessent was also onboard, saying that “Stablecoin legislation backed by US Treasuries or T-bills will create a market that will expand US dollar usage via these stablecoins all around the world.”

US Senate Committee on Banking, Housing, and Urban Affairs Chairman Tim Scott called it a historic day for our nation.

“After voting on 40 amendments [], we were able to forge a piece of legislation that focuses on the marketplace.”

The legislation requires stablecoins to be fully backed and for issuers to undergo regular security audits and approval from federal or state regulators. It also imposes limitations on algorithmic stablecoins and those without full backing.

NEW: The GENIUS Act has officially passed the Senate.

I caught up with @BankingGOP Chair @SenatorTimScott after the vote. He called it a “historic day for our nation” and said the focus now shifts to market structure.

“Let’s get this party started.” pic.twitter.com/4U1dGQoTl2

It also opens the door to a “broader range of issuers,” including banks, fintech firms, and major retailers or tech giants looking to launch their own stablecoins or integrate them into existing payment systems, reported CNBC.

Democrats in Opposition

Nevertheless, several Democrats were against the bill and tried to force amendments to it before the vote.

Democrats tried to amend the bill to prevent President Trump and his family from profiting off crypto ventures. However, the final legislation only prohibits members of Congress and their families from doing so.

Related legislation, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, is also making its way through Congress.