The Senate has taken a significant step toward federal regulation of stablecoins by advancing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act), a proposal designed to lay the groundwork for the mainstream adoption of digital currencies in the United States.

The bill cleared its first major hurdle with a 68-30 vote in favor of cloture, moving it forward for debate and a potential floor vote.

We obtained a copy of the bill for you here.

Senate Majority Leader John Thune, who has emerged as a key advocate of the measure, argued that the legislation aligns with a broader vision of US leadership in digital finance.

Echoing language frequently used by President Donald Trump, Thune said the bill could position the country as the "crypto capital of the world." He also highlighted the long-term ambition to normalize cryptocurrency use across the financial system, calling the GENIUS Act a tool to achieve that. "We want to bring cryptocurrency into the mainstream, and the GENIUS Act will help us do that," Thune stated.

Though support crossed party lines, the push to pass the bill was not without resistance. Senator Elizabeth Warren was one of several lawmakers who voiced opposition.

Framed as a step toward legitimizing stablecoins, the GENIUS Act creates a tightly controlled environment for digital dollar issuers.

Only those who qualify as "permitted payment stablecoin issuers" may operate legally under the bill, provided they submit to extensive regulatory oversight, including audits, public disclosures, and strict reserve requirements.

The bill integrates stablecoin issuers into the framework of the Bank Secrecy Act, compelling them to comply with anti-money laundering (AML) and sanctions enforcement laws.

That alignment means all permitted issuers will be subject to know-your-customer (KYC) obligations and expected to collect and share sensitive user data with federal authorities when deemed necessary.

One provision directly implicates privacy concerns by mandating the US Treasury to evaluate emerging financial surveillance technologies, ranging from AI-based monitoring systems to blockchain analysis tools, and assess their "privacy risks" relative to existing standards.