The US Senate has passed the GENIUS Act, the first bill to establish a federal framework for regulating dollar-backed stablecoins. Passed with cross-party support in a 68-30 vote, the legislation marks a major win for the crypto industry, which has long sought clearer oversight.

The bill still requires approval from the House and a signature from President Trump. It would mandate that stablecoin issuers hold reserves in cash or US Treasuries, undergo audits, and disclose their holdings.

While it bans members of Congress and their families from profiting, the same restriction does not apply to Trump and his family - a point of contention among Democrats.

Circle and other crypto firms welcomed the move. Meanwhile, major players like Bank of America, Amazon, and Walmart are exploring their stablecoin offerings. Trump has also backed a new coin, USD1, through his startup World Liberty Financial.

If the legislation becomes law, it could transform payments by encouraging new issuers, reducing reliance on traditional card networks, and expanding global access to digital dollars. US Treasury Secretary Scott Bessent believes the market could surpass$2 trillion by 2028.