The United States Senate has approved landmark legislation to regulate stablecoins, signaling a major shift in how the federal government approaches a fast-growing segment of the cryptocurrency industry.

The bill, known as the GENIUS Act, now awaits passage in the House of Representatives before heading to President Donald Trump for final approval.

Stablecoins — digital tokens typically pegged 1:1 to the U.S. dollar — have become a key tool for crypto traders and are increasingly attracting interest from major global corporations. The proposed legislation mandates that stablecoins be backed by highly liquid assets such as U.S. dollars and short-term Treasury bills. It also requires issuers to publicly disclose the composition of their reserves on a monthly basis.

Industry analysts say the bill could accelerate adoption of stablecoins across sectors by providing much-needed regulatory clarity and legal certainty.

PayPal became the first major fintech firm to launch a stablecoin, debuting PYUSD in August 2023. Circle Internet, which went public recently, issues USDC, one of the most widely used stablecoins with a market cap of $61.5 billion.

Paxos issues USDP and USDG, along with BUSD in partnership with Binance. Tether remains the dominant player, with its USDT token valued at over $155 billion.

MakerDAO’s DAI stablecoin, with a $5.4 billion market cap, rounds out the top four.

If the GENIUS Act is signed into law, it would mark the United States’ first comprehensive stablecoin regulation — a move likely to shape the future of digital currencies in both domestic and global markets.