Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
GENIUS Act Advances as Bitcoin Hits Record High
Digital Assets | May 22, 2025
Image: Freepik
U.S. Stablecoin Bill Gains Traction as Bitcoin Hits New All Time High
Various sources have reported that the U.S. Senate has now approved the GENIUS Act to move forward, which is the proposed law that sets out national rules for the issuance of stablecoins and how they would be backed and managed in the U.S. Stablecoin adoption has been on fire recently, as they are increasingly used for crypto trading, cross-border payments, and digital services.
Only a couple of weeks ago on May 8, 2025, the GENIUS Act failed to clear a procedural vote in the Senate, receiving only 49 votes of the 60 needed to move forward, largely over Democrat conflict of interest concerns involving President Trump's family and their growing crypto ventures, including USD1 stablecoin backed by World Liberty Financial.
At the same time, Bitcoin just surged past $111,000 on May 21, reaching a new all-time-high (ATH), a clear signal of how fast the digital asset world is growing and that clear rules are needed.
Stablecoin Regulation Advances
Fifteen Democrats joined Republicans, showing rare bipartisan alignment with the U.S. Senate approving the GENIUS Act in a 66–32 vote, allowing it to move to a full vote soon where lawmakers may combine it with other similar proposals before sending it to the President for review and sign-off. Support from both major parties indicates a strong chance that the GENIUS Act will eventually become law.
A recent Congressional Research Service report also outlines how the bill could reshape the stablecoin landscape, clarifying rules around issuance, reserve backing, and oversight.
Under the GENIUS Act, only licensed banks, approved non-banks, and qualified state level issuers can offer stablecoins to people in the U.S., which is designed to help keep out unregulated or risky issuers.
See: U.S. Senate Moves to Regulate Stablecoins
The bill also requires stablecoins to be backed 1-1 by U.S. dollars or very liquid assets. Issuers would have to publish monthly updates showing what backs their coins and clearly explain how people can redeem them. Companies outside the U.S. would need approval from the Treasury and proof that they meet requirments and can follow similar rules.
Crypto and AI advisor to the President, David Sacks, said the GENIUS Act could “create trillions of dollars of demand for U.S. Treasuries practically overnight.” He is positioning stablecoins as a national economic strategy, not just about digital innovation. The White House has strongly backed the bill, although some Democrats remain concerned about conflicts of interest tied to President Trump’s family’s involvement in crypto.
Digital Assets Heating Up
Bitcoin’s latest surge puts digital assets back in the spotlight, and with more people using stablecoins and Bitcoin ATMs, regulators want to make sure these services are safe and clearly regulated. The GENIUS Act is one way to respond to this fast growth.
See: Fidelity Report Insights on Digital Assets in 2025
Other countries are moving quickly, too. Jurisdictions like the EU, UAE, and Singapore are building their own stablecoin frameworks. If the U.S. experiences further delays, it could risk losing ground in establishing the global standard and leadership role in digital assets.
Conclusion
The GENIUS Act would reduce uncertainty and make it easier for fintechs and investors to innovate in digital asset markets while establishing a foundation for a safer and more trusted digital asset financial ecosystem.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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