Washington appears to be on the verge of passing one of its most significant pieces of crypto legislation yet. The GENIUS Act, a bipartisan stablecoin bill introduced by Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY), is gaining serious traction—and sources suggest it could clear Congress as soon as next week.
According to angel investor and digital finance commentator Paul Barron, direct conversations with Capitol Hill insiders confirm that political support for the bill is accelerating.
If passed, the GENIUS Act would establish the first federal regulatory framework for stablecoin issuance in the United States, offering long-awaited clarity to both crypto startups and institutional players.
A Bipartisan Push for Regulatory Reform
Introduced in March 2024, the Guiding Emerging New Innovations for U.S. Stability Act (GENIUS Act) seeks to provide guardrails for stablecoin issuers while ensuring the United States remains competitive in the evolving global financial landscape.
The bill has found rare bipartisan unity, with both Democrats and Republicans recognizing the urgent need to regulate stable digital assets without stifling innovation.
At its core, the GENIUS Act aims to:
- Create a licensing and compliance regime for stablecoin issuers.
- Set consumer protection standards.
- Allow state and federal charters to coexist.
- Ensure that stablecoin reserves are backed by high-quality liquid assets.
White House Alignment: Trump Backs the Bill
In a major political development, President Donald Trump has reportedly aligned the GENIUS Act with his broader economic agenda. According to Barron, Trump’s policy team sees the bill as a cornerstone for reasserting U.S. leadership in fintech and blockchain innovation.
The move comes as the former president increasingly voices support for crypto adoption and digital financial tools. Trump’s campaign has been vocal about supporting blockchain technologies and even floated ideas around creating a national digital asset strategy to rival China’s growing foothold in CBDCs (Central Bank Digital Currencies).
Sources close to the administration say the White House is now actively working with Congressional leaders to fast-track the legislation.
Opening the Door for Web3 Growth in the U.S.
Crypto analysts and startup founders have welcomed the GENIUS Act as a potential breakthrough. The current patchwork of regulations—spread across state authorities, the SEC, and other federal bodies—has created compliance challenges and forced several projects to relocate overseas.
By creating a unified set of rules, the GENIUS Act could:
- Encourage new Web3 projects to launch in the U.S.
- Boost investor confidence in regulated stablecoins.
- Allow fintech firms and legacy institutions to build on-chain financial products.
If enacted, the law could provide a clear on-ramp for startups to operate within a regulatory sandbox, a concept already explored in states like Wyoming and Florida.
Dissent from Regulatory Hawks
Despite bipartisan and presidential support, the bill is not without critics. Senator Elizabeth Warren and several allies in the Senate Banking Committee have expressed concern over potential loopholes. They argue that the bill might enable unregulated financial behavior under the guise of innovation.
Warren’s camp is pushing for tougher scrutiny on algorithmic stablecoins and greater integration with anti-money laundering (AML) policies.
However, some insiders say her opposition may not be strong enough to derail the bill, especially with Republican backing and growing crypto advocacy from within the tech sector.
Industry Implications: A Blueprint for Global Regulation?
The GENIUS Act could do more than just stabilize the U.S. digital asset market—it might serve as a legislative model for other countries.
While the European Union has passed its Markets in Crypto-Assets (MiCA) framework, the United States has lagged, particularly on stablecoin regulation.
If passed, the GENIUS Act would:
- Establish the U.S. as a leader in digital asset regulation.
- Improve cross-border payment infrastructure.
- Attract institutional capital by reducing legal uncertainty.
The legislation may also complement ongoing discussions around a potential U.S. central bank digital currency (CBDC), though Federal Reserve officials have maintained a cautious approach.
Conclusion
With cross-party support, alignment from the Trump administration, and a growing need for regulatory clarity, the GENIUS Act could be the first major U.S. crypto bill to cross the finish line.
Its passage would reshape the stablecoin market, encourage domestic innovation, and position the United States as a dominant force in the next wave of financial technology.
