TLDR:
- GENIUS Act mandates full asset backing and bans algorithmic stablecoins in the U.S.
- SEC and CFTC sidelined from direct stablecoin oversight under the new framework.
- The bill promotes U.S. dollar strength in digital markets against global competitors.
- Ripple and industry leaders praised the act as a long-needed move toward crypto clarity.
A new chapter is opening for U.S. crypto regulation. The House just passed the GENIUS Act, setting the stage for stablecoin clarity. This bill aims to modernize the payment system and strengthen the dollar’s role in the global digital economy.
With a strong bipartisan vote, lawmakers signaled readiness to embrace blockchain innovation. The measure now heads to the President’s desk for final approval.
The GENIUS Act Crypto Bill Passes
The GENIUS Act sets firm rules for stablecoin issuers, requiring full asset backing and banning algorithm-based tokens.
According to Rep. Tom Emmer, the bill creates a clear path for innovators to build within U.S. borders without facing uncertain regulation. Senator Bill Hagerty, who authored the bill, said the legislation will increase global demand for U.S. Treasuries and help maintain the dollar’s strength in cross-border markets.
🚨🚨🚨 The House just passed my bill – The GENIUS Act!
This historic legislation will bring our payment system into the 21st century. It will ensure the dominance of the U.S. dollar. It will increase demand for U.S. Treasuries.
I look forward to @POTUS signing GENIUS into law –… pic.twitter.com/NmQMVHZGls
— Senator Bill Hagerty (@SenatorHagerty) July 17, 2025
The bill’s passage marks a shift away from regulatory friction. It introduces structure in a space long hindered by conflicting interpretations from multiple agencies. The 308-122 vote highlighted broad support for a more coordinated approach to digital asset oversight.
DOGEai, a policy watchdog account, noted the bill sidelines the SEC and CFTC, removing them from direct control of stablecoins. Instead, the framework places compliance at the core, enforcing transparency through 1:1 reserve mandates. This shift aims to keep consumer protections intact while giving stablecoin providers room to innovate.
The group also pointed to global competition. By limiting regulatory overreach, the U.S. can position dollar-backed stablecoins as a counter to China’s digital yuan and European constraints. The move could reshape global payments, shifting dominance toward private U.S. stablecoin issuers backed by Treasury assets.
Industry Voices Back the Legislative Breakthrough
Ripple’s Chief Legal Officer, Stuart Alderoty, described the bill’s progress as a long-awaited step toward practical frameworks.
He welcomed the change as a sign that lawmakers are now listening to both innovators and consumers. As he explained, clearer guardrails don’t just benefit the crypto industry; they ensure the U.S. doesn’t fall behind.
The GENIUS Act now goes to the President’s desk, and the CLARITY Act moves forward to the Senate – at long last, there’s movement on workable, clear frameworks for crypto and stablecoins that will both foster innovation and protect consumers. This is exactly what the American… https://t.co/keR2jFMzCX
— Stuart Alderoty (@s_alderoty) July 17, 2025
The crypto community has called for streamlined rules for years. Now, with the GENIUS Act on the verge of becoming law, those calls are finally being answered.
The focus now turns to the Senate and the next major proposal, the CLARITY Act.
Meanwhile, crypto investors are watching how markets respond to stablecoin regulatory certainty. If signed into law, the GENIUS Act could open the door for greater institutional participation and pricing stability in digital assets.
Besides enabling growth, the new rules may attract fintech firms back to the U.S. With regulatory uncertainty reduced, the playing field becomes clearer and far more competitive.
