David Sachs, the Director of Artificial Intelligence and Cryptocurrency at the White House, noted a trillion-dollar demand for stablecoins following the U.S. Senate’s support for the GENIUS Act. This initiative was also backed by Matt Hougan, CIO of Bitwise, who believes that this move will open new opportunities for the mass adoption of crypto assets.
This is reported by Business • Media
On May 19, 2025, the U.S. Senate voted 66 to advance the bill “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS Act), which regulates the stablecoin market. This bill received bipartisan support, including from 16 Democrats who had previously expressed opposing views. Before the law takes effect, several more votes on amendments will be necessary.
Prospects for the Crypto Asset Market
“Policymakers in Washington have taken the right step. I don’t want to celebrate prematurely, but it looks like we will have the first comprehensive crypto regulatory law in the U.S. this summer,” Hougan noted in a client memo.
According to analysts, this legislative initiative, which mandates that stablecoins be backed by U.S. Treasury bonds or their cash equivalents, could lay the groundwork for long-term growth in crypto assets. “I believe this sets the foundation for long-term growth of crypto assets beyond Bitcoin. Ethereum (ETH), Solana (SOL), and DeFi projects like Uniswap (UNI) and Aave (AAVE) will benefit the most,” he emphasized.
Criticism and Support for the Bill
The bill also requires mandatory registration of issuers with federal banking regulators, annual audits for companies with a market capitalization over $50 billion, and compliance with anti-money laundering standards. External issuers and non-residents of the U.S. will also be subject to regulation.
In the lead-up to the vote, activists from the Stand With Crypto campaign sent over 60,000 letters to senators in support of the bill. One of its authors, Republican Senator Bill Hagerty, described the document as “revolutionary.” “This bipartisan legislation will bring America’s payment system into the 21st century,” he stated.
However, not everyone supports this initiative. Democrat Elizabeth Warren criticized the ignoring of Donald Trump’s connections to the cryptocurrency project World Liberty Financial. Congressman French Hill, elected chairman of the House Financial Services Committee, believes that Trump’s crypto initiatives complicated the passage of stablecoin regulations.
At the time of preparing this material, the market capitalization of stablecoins had reached nearly $250 billion. Hougan emphasized that the passage of the GENIUS Act will legalize the market at the federal level, opening opportunities for the participation of large banks and widespread use of stablecoins in trade.
“Imagine a world where JPMorgan and Bank of America issue stablecoins, Amazon offers a 2% discount if you pay with them, and they are accepted as widely as Venmo or PayPal,” Hougan predicted.
In his view, this law will be the first step toward transitioning the entire financial infrastructure—stocks, bonds, and derivatives—onto the blockchain. “This is a true ‘Genius Act,'” he concluded.
Let us remind you that U.S. Senator from South Dakota John Thune submitted a proposal for the passage of the GENIUS Act.