On May 20, the U.S. The Senate passed the GENIUS Act (the 2025 U.S. Stablecoin Innovation Guidance and Establishment Act) by a vote of 66-32, marking a new era for stablecoin regulation. This milestone not only triggered heated discussions on compliance development in the market, but also had a far-reaching impact on the ecological layout of platforms such as XBIT (DEX Exchange).
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The GENIUS Act is the first comprehensive federal stablecoin regulatory bill in the United States. Its advancement has caused a heated response in the crypto market, and the DeFi and RWA sectors related to stablecoins have led the market. XBIT (dex Exchange) strategist predicts that the global stablecoin market size is expected to reach 1.6 to 3.7 trillion US dollars by 2030. The passage of the bill provides "compliant" qualitative and development space for stablecoins, and traditional companies have more reasons to enter. The market expects incremental funds to bring new liquidity. But before that, we need to understand the content of the bill and the legislative motivation behind it.
GENIUS Act means "genius bill", which is actually the abbreviation of the "2025 United States Stablecoin Innovation Guidance and Establishment Act". Its goal is to provide legitimacy and security for the stablecoin market by clarifying the regulatory framework and consolidate the dominant position of the US dollar in digital finance.
Coin World interprets the bill: the key content covers reserve requirements, regulatory classification, transparency and compliance. Stablecoin issuers must be 100% reserve-backed, with reserve assets consisting of highly liquid assets such as the U.S. dollar and short-term U.S. Treasury bonds, and the reserve composition must be disclosed monthly; large issuers with a market value of more than $10 billion are directly regulated by the Federal Reserve System or the Office of the Comptroller of the Currency, and small issuers are regulated by the states; misleading marketing is prohibited, issuers must comply with anti-money laundering and know-your-customer regulations, and issuers with a market value of more than $50 billion are required to audit financial statements annually.
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XBIT Looking back at history, the stablecoin market has developed rapidly, but the lack of supervision has led to prominent risks, such as the collapse of the algorithmic stablecoin UST in 2022. The United States has been exploring stablecoin regulation for many years. In 2023, the House of Representatives proposed the STABLE Act, which was not passed by the Senate. On February 4, 2025, the Senator proposed the GENIUS Act, which was reviewed and passed by the Senate Banking Committee on March 13. The first unanimous vote on May 8 failed because it did not reach the threshold. After revisions, restrictions on large technology companies were added to eliminate the concerns of some members. Finally, a procedural vote was passed on May 19, and it is expected to pass a unanimous vote in the Senate soon.
XBIT (dex Exchange) analysts said: The legislation of the GENIUS Act is of far-reaching significance. For the market, it marks the transition of the US stablecoin market from "wild growth" to standardization, filling the regulatory gap; from a strategic perspective, the United States intends to consolidate the status of the US dollar through stablecoins to cope with the competitive pressure of China's digital RMB and the EU MiCA regulations; from an industry perspective, it may pave the way for broader crypto market legislation and promote the integration of the crypto industry with traditional finance.
This bill also has a direct impact on crypto assets and affects the entire crypto market. Its core provisions reshape the stablecoin industry and have a chain effect on crypto tracks such as DeFi, Layer 1 blockchain and RWA. XBIT (dex Exchange) analysts believe that if some related track projects want to benefit from the bill, they need to make corresponding adjustments in product design and business. The GENIUS Act is undoubtedly a powerful catalyst for a new round of bull market and deserves close attention from the market.
Twitter : @XBITDEX
The GENIUS Act is not only a regulation of the stablecoin market, but also a milestone in the integration of the crypto industry and traditional finance. XBIT (dex Exchange), compliance is the bottom line, and innovation is the core. By deeply participating in the construction of the stablecoin ecosystem, DEX is expected to become a key force in promoting the "out-of-circle" of crypto assets and open up a new growth curve in the wave of compliance. In the future, XBIT (dex Exchange) may reconstruct its own positioning from multiple dimensions such as asset custody, cross-chain interconnection, and user education, and help the crypto industry move towards a broader business landscape.
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