The US Senate handed the GENIUS Act Invoice on Wednesday with a vote of 68-30 in a significant enhance for stablecoins — reserve-backed cryptocurrencies which have acquired an impetus from the Donald Trump administration in America. The subsequent stage for the GENIUS Act will probably be passage within the US Home of Representatives, the place members have readied their very own model of a stablecoin regulation invoice, the STABLE Act.
Challenges however, the GENIUS Act’s passage within the US Senate led to a surge within the value of crypto alternate operator Circle. In line with alternate knowledge, Circle Web Group’s share value was up 33.82 per cent at market closing on Wednesday. In pre-market exercise, Circle’s share value was up one other 24.75 per cent to $211.87 apiece at 1:35 pm IST on Friday. US markets have been closed on Thursday for the Juneteenth 2025 Nationwide Independence Day.
Stablecoins, or commodity-backed cryptocurrencies, have witnessed a surge in market capitalisation to $251.7 billion thus far in 2025, marking a 22 per cent rise this yr, Reuters reported on Wednesday, citing business knowledge. The passage of the GENIUS ACT Invoice within the US Senate is backed by a number of actions taken by the administration of US President Donald Trump — from the announcement of a strategic crypto reserve to the promotion of cryptocurrency sympathiser Paul S Atkins as chairperson of the US markets regulator, the Securities and Trade Fee. Trump’s household pursuits in cryptocurrency are well-known and have been talked about within the Senate discussions after the tabling of the GENIUS Act.
What US Treasury Secretary Scott Bessent mentioned on stablecoins
Within the run-up to the passage of the GENIUS Act invoice within the US Senate, US Treasury Secretary Scott Bessent mentioned in a social media put up on X that “stablecoins may develop right into a $3.7 trillion market by the tip of the last decade”.
Latest reporting initiatives that stablecoins may develop right into a $3.7 trillion market by the tip of the last decade. That state of affairs turns into extra possible with passage of the GENIUS Act.
A thriving stablecoin ecosystem will drive demand from the non-public sector for US Treasuries, which again…
— Treasury Secretary Scott Bessent (@SecScottBessent) June 17, 2025
In a podcast clip posted on his X web page, Bessent mentioned crypto is unlikely to pose a menace to the US greenback stating that “stablecoins may reinforce greenback supremacy, as a result of stablecoins can find yourself being one of many largest patrons of US Treasuries… T-bills.”
Elaborating on how this will likely work, Bessent gave the instance of how “unexpectedly if you’re utilizing a stablecoin in Nigeria backed by the USD, you don’t truly should have {dollars} it’s in your telephone, you may transact (utilizing dollar-backed stablecoins)…”
Crypto just isn’t a menace to the greenback. Actually, stablecoins can reinforce greenback supremacy.
Digital belongings are probably the most necessary phenomena on this planet proper now, but they’ve been ignored by nationwide governments for much too lengthy.
This administration is dedicated to… pic.twitter.com/vWsLgYyNW7
— Treasury Secretary Scott Bessent (@SecScottBessent) June 18, 2025
“There’s an excellent probability that crypto is definitely one of many issues that locks in greenback supremacy,” Bessent added.
GENIUS, STABLE and the race to control stablecoins
The Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act was handed by the US Senate on Wednesday with a 68-30 vote. The invoice units guardrails for stablecoins with proposals for compliance to make sure prevention of cash laundering, full backing of cryptocurrencies by reserves and month-to-month audits.
Final week, Bessent instructed Senators that the US stablecoin market may surge 8X to $2 trillion,
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CNBC reported. The GENIUS Act will probably be tabled subsequent within the US Representatives Home which has its personal model of the stablecoin regulation invoice, the STABLE Act.
The Stablecoin Transparency and Accountability for a Higher Ledger Financial system (STABLE) Act locations oversight of stablecoins, or reserve backed cryptocurrency beneath the purview of the Workplace of the Comptroller the Forex within the US, much like the GENIUS Act.
Nevertheless, STABLE Act differs from the GENIUS Act when it comes to limiting reserve backing necessities to a clutch of belongings equivalent to US Treasuries other than proscribing who can subject stablecoins, based on Jeff Reundlet, head of accounting technique at Cryptio, supplier of ledger providers for cryptocurrencies.
Nevertheless, the STABLE Act invoice could not go far sufficient, based on a paper written by companions on the legislation agency Orrick.
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Whereas the invoice goals to create a single regulatory framework for potential issuers, and excludes fee stablecoins from federal securities legal guidelines, it might enable state regulators the facility to observe which stablecoins could also be supported by exchanges of licensed intermediaries, wrote Nathaniel Reisenburg, managing affiliate, and Joseph Perkins and Ignacio Sandoval, companions at Orrick.
Trump’s crypto pursuits
US President Donald Trump took to his social media platform Fact Social after the US Senate handed the GENIUS Act invoice, stating it “going to make America the UNDISPUTED Chief in Digital Belongings — No one will do it higher, it’s pure GENIUS!”
“Digital Belongings are the longer term, and our Nation goes to personal it. We’re speaking about MASSIVE Funding, and Massive Innovation,” Trump added.
In his podcast interview, Bessent reiterated the Trump administration’s dedication to digital belongings, whereas including that “as a result of there are such a lot of different issues that occur round digital belongings… it’s probably the most necessary phenomenons taking place round us on this planet and the US simply ignored it (beneath the Biden administration).”
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Trump reversed his stance on crypto belongings from his first time period, and even launched his personal namecoin to burnish his credentials as a backer of digital digital belongings. Cryptocurrency backers additionally contributed generously — round $20 million —into electing what is taken into account a pro-crypto Congress through the 2024 cycle, CNBC reported.
Trump’s crypto empire
In a current declaration, Trump disclosed earnings of over $600 million from pursuits together with crypto, golf golf equipment, and licensing offers other than different ventures.
In line with the general public disclosure, the US President has earned an estimated $320 million from his $TRUMP memecoin. Trump additionally pulled in $400 million from the World Liberty Monetary platform for cryptocurrencies which is backed by his kids. The US President earned $57.35 million from the sale of digital tokens at WLF. He additionally reportedly held over 15 billion governance tokens in WLF.
Different crypto ventures associated to Trump embody alternate traded funds held by way of Fact Social’s crypto vertical Fact.Fi, and crypto mining agency American Bitcoin, CNBC reported.
Crypto diplomacy and countering de-dollarisation
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Hacker group Gonjeshke Darande, Persian for ‘Predatory Sparrow’, with potential hyperlinks to Israel, wiped off $90 million from Iran’s largest crypto alternate Nobitex, Reuters reported, citing a Telegram put up by the group.
The assault was confirmed within the app by Nobitex, based on the report.
Hackers wiped the alternate clear of a variety of digital cash from Bitcoin to Ethereum and Dogecoin, mentioned Andrew Fierman, head of nationwide safety intelligence at Chainalysis, the newswire reported.
Final month, Trump family-linked WLF inked a pact with the Pakistan Crypto Council to spice up cryptocurrency adoption within the nation, days after it agreed to a ceasefire with India within the aftermath of Operation Sindoor, which was launched by New Delhi to focus on terror camps throughout the border in response to a terror assault in Pahalgam, Kashmir which killed 26 Indian vacationers.
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Aside from these cases of cryptocurrencies enjoying a key function in diplomacy in addition to hostilities, digital tokens are additionally getting used to bolster the US greenback’s supremacy, as identified by Bessent above. By formalising stablecoin issuance, backed by the greenback, the US is seemingly hedging its bets in a world the place key economies are switching to commodities equivalent to gold as they intend to de-risk their holdings from USD-related volatility.
The US sanctions on Russia within the aftermath of the declaration of battle on Ukraine concerned the freezing of Russian international alternate value $300 billion, triggering a risk-off method amongst international locations the world over.
In 2023, Russian President Vladimir Putin gave a name for de-dollarisation, urging the BRICS grouping to advertise settlements in nationwide currencies and develop bank-to-bank cooperation.
Trump warned the BRICS towards such a transfer which may doubtlessly harm the greenback. In a press release in February Trump boasted he had warned BRICS nations of desisting from de-dollarisation or face outsized tariffs.
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The stablecoin route is predicted to energise the greenback by selling the usage of cryptocurrency pegged to the dollar. It stays to be seen whether or not this will probably be adopted throughout the globe.