The regulation of cryptocurrencies in the United States is facing a historic turning point. The U.S. Securities and Exchange Commission (SEC) recently announced the withdrawal of a series of crypto regulations led by Gary Gensler, the chairman during the Biden administration. Meanwhile, the U.S. Senate has set a final vote on the widely followed "GENIUS Act," which promises to bring unprecedented legal clarity to the stablecoin market.
According to the latest announcement on the Senate Democrats' official website, this crucial vote will be scheduled after consultations between the Democratic leader and the majority leader. The "GENIUS Act" aims to establish a comprehensive regulatory framework for stablecoins, covering not only asset backing requirements and audit obligations for issuers within the U.S. but also extending compliance guidance to overseas stablecoin issuers like Tether. If passed by the Senate, the bill will be submitted to the House of Representatives, taking a critical step in the federal legislative process.
Specifically, the "GENIUS Act" requires all stablecoins to be backed 100% by the U.S. dollar or highly liquid assets, and issuers with a market value over $50 billion must undergo an independent audit annually. Additionally, the bill seeks to clarify the division of authority between state and federal governments in stablecoin regulation and aims to fill the current policy gap in compliance for foreign issuers. This legislative move has attracted widespread attention in the crypto industry and is seen as an important step towards building a "legitimate market for stablecoins" in the U.S.
As the bill moves into its final deliberation phase, the SEC has also made significant adjustments. On June 16, the SEC officially announced the withdrawal of 14 proposed rules submitted between March 2022 and November 2023. Most of these rules were initiated by then-chairman Gensler and were widely interpreted as symbolizing a "high-pressure scrutiny" approach to the crypto industry. Among the most controversial was the "Rule 3b-16," which initially planned to expand the definition of "exchanges" to include most DeFi protocols; other provisions aimed to impose stricter requirements on crypto custody standards for investment advisors, triggering widespread industry backlash.
The SEC's withdrawal is interpreted as the end of the "strong regulation" path of the Biden era and also marks a loosening of regulatory stances on Web3 and cryptocurrency issues by U.S. regulatory bodies. As the 2024 U.S. presidential election approaches, crypto policy has become a significant issue for Democrats and Republicans vying for the youth vote, with easing regulations, encouraging innovation, and providing policy certainty becoming mainstream consensus.
At the same time as the policy shift, the crypto industry is entering a new era of "regulatory clarity and competitive compliance." If the "GENIUS Act" passes smoothly through Congress, it could inject strong developmental momentum into stablecoins as infrastructure-level products, helping crypto finance better integrate into the global economic system. The SEC's proactive regulatory retreat could also release broader reform signals, including redefining and regulating DeFi, NFTs, and crypto custody services.
Overall, the U.S. government is reconstructing the cryptocurrency regulatory framework at an unprecedented pace in the summer of 2025. From the SEC's self-correction to accelerated legislation in Congress, the U.S. crypto market seems to be emerging from policy fog and moving towards a more stable and predictable new regulatory phase. This change will not only affect the operational strategies of crypto enterprises but also reshape the competitive landscape of global digital assets. For developers, investors, and regulatory bodies, a new crypto era about "trust and transparency" is beginning.
