Main Points：
- Introduction of the GENIUS Act (Feb 4, 2025): Lays the groundwork for a two-track federal/state framework for “payment stablecoins.”
- Senate Passage of the GENIUS Act (June 17, 2025): Passed 68–30 on bipartisan lines, setting up reserve, transparency, and compliance requirements for stablecoin issuers.
- Gaps in Presidential Exemptions: GENIUS Act prohibits stablecoin issuance by many officials but exempts the President, Vice President, and their families.
- Introduction of the COIN Act (June 23, 2025): Senator Adam Schiff’s Curbing Officials’ Income and Nondisclosure (COIN) Act bans the President, VP, senior executive-branch officials, members of Congress, and their immediate families from issuing, sponsoring, or endorsing any digital asset—including meme coins, NFTs, and stablecoins—for 180 days before and two years after their service. Requires disclosure of any transaction over $1,000 and imposes penalties up to $ profit-equivalent fines plus 5 years’ imprisonment.
- Related Anti-Trump Crypto Proposal: On the same day, Rep. Maxine Waters introduced the TRUMP in Crypto Act targeting Trump’s personal memecoin deals.
- Regulatory and Market Implications: These parallel efforts highlight Congress’s focus on ethical guardrails for digital assets, with stablecoin frameworks converging even as targeted bans seek to plug loopholes at the highest levels.
- Opportunities for Practical Blockchain Use: As stablecoin regulation matures, new niches in DeFi, compliance-friendly governance tokens, and on-chain transparency tools are set to emerge for readers seeking the next crypto asset or revenue stream.
The Genesis of the GENIUS Act
On February 4, 2025, Senators Hagerty, Scott, Gillibrand, and Lummis introduced S. 394, known as the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (GENIUS Act). This landmark bill proposed the first comprehensive federal regulatory framework for “payment stablecoins”—blockchain-based tokens redeemable at a fixed value. Under S. 394, issuers would fall into three categories: subsidiaries of insured depository institutions (IDIs), federal-qualified nonbank issuers (regulated by the OCC), and state-qualified issuers whose regimes mirror federal standards. A key $10 billion issuance threshold would govern whether a nonbank issuer must submit to federal oversight or may operate under state law. These provisions aim to balance innovation with consumer protection by mandating 100 percent reserve backing in U.S. dollars or short-term Treasuries and imposing anti-money-laundering obligations.
Practical Takeaways for Blockchain Practitioners
For those building real-world blockchain applications—e.g., payment rails, tokenized asset platforms, or DeFi services—the dual-track structure means you must assess whether your stablecoin project will target federal or state licensing. Early planning around reserve custodian relationships and AML compliance is now critical to avoid deployment delays.
Senate’s Bipartisan Vote: Cementing Stablecoin Rules
On June 17, 2025, the U.S. Senate overwhelmingly approved the GENIUS Act by a 68–30 vote, underscoring broad support for stablecoin legitimacy. Backers touted clearer reserve requirements, transparency mandates, and consumer protections. Critics, however, compared the act’s narrow scope to past missteps like the Commodity Futures Modernization Act of 2000, warning of unintended systemic risks. President Biden signaled White House backing for swift House passage, aiming for enactment before the August recess.
Impact on Crypto Market Innovation
Regulated stablecoins are forecast to expand the U.S. market to as much as $2 trillion over the next decade, according to Treasury projections. For entrepreneurs, this means a large addressable market—but also higher stakes for compliance budgets, reserve audits, and governance mechanisms.
Exemptions: The Presidential Loophole
Despite its far-reaching scope, the GENIUS Act exempts the President, Vice President, and their immediate family members from the prohibition on issuing stablecoins. This omission drew rebuke from ethics advocates, who argued that high-level officials could exploit the loophole for personal gain.
Enter the COIN Act: Banning Crypto Deals at the Top
On June 23, 2025, Senator Adam Schiff (D-CA) introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act to address precisely that loophole. Officially titled the “Government Officials’ Income and Nondisclosure Suppression Act,” the COIN Act seeks to:
- Prohibit Issuance, Sponsorship, or Endorsement
Bars the President, Vice President, senior executive-branch employees, special government employees, and Members of Congress—and their immediate families—from engaging in any digital‐asset activity (meme coins, NFTs, stablecoins) during office, plus 180 days before and two years after service. - Mandatory Disclosures
Requires any transaction over $1,000 to appear in annual financial disclosures and periodic transaction reports. - Criminal Conflict-of-Interest Codification
Treats digital-asset holdings as recusable financial interests under criminal-conflict statutes. - Stablecoin Certification
Directs stablecoin issuers to quarterly certify to the Office of Government Ethics that no public official is profiting from issuance as a condition of regulatory approval. - GAO Review
Orders the Government Accountability Office to deliver within 360 days recommendations to update federal ethics laws for future digital-asset frameworks.
“President Donald Trump’s cryptocurrency dealings have raised significant ethical, legal and constitutional concerns over his use of the office of the presidency to enrich himself and his family,” Schiff said upon introduction.
The Trump Crypto Backdrop
This push follows disclosures that World Liberty Financial—founded by former President Donald Trump—generated $57.3 million in revenue in 2024 after issuing a USD1 stablecoin and a meme coin sold pre-election. Critics point to private White House dinners rewarding top memecoin holders as evidence of influence-peddling.
Parallel Efforts: The TRUMP in Crypto Act
Also on June 23, Rep. Maxine Waters (D-CA) introduced the TRUMP in Crypto Act, targeting Trump’s memecoin directly by blocking his ability to issue or profit from digital assets during and after office. Although distinct in scope, Waters’s bill and Schiff’s COIN Act share the goal of restoring public trust by erecting ethical firewalls around digital-asset markets.
Congressional Outlook: Passage Challenges
With Republicans holding a Senate majority, the COIN Act faces an uphill battle. Its bipartisan champions argue it’s a necessary complement to the GENIUS Act and broader crypto market structure legislation. Lawmakers have signaled a willingness to negotiate, but the coming weeks will determine whether ethical safeguards rise above partisan divides.
Implications for Crypto Innovators
For developers and investors eyeing new crypto assets or revenue streams, these twin legislative tracks signal:
- Heightened Compliance: Expect expanding ethics and disclosure requirements, especially for enterprises connected to public officials.
- Niche Opportunities: Projects unrelated to stablecoins—such as governance tokens, oracles, and on-chain identity—may see accelerated growth as stablecoin pathways narrow.
- Transparency Tools: Demand for blockchain-based audit and reporting platforms will grow, creating revenue potential in “reg-tech” solutions.
Conclusion
The combined momentum of the GENIUS Act and the newly introduced COIN Act illustrates Congress’s dual focus on legitimizing core blockchain infrastructure while guarding against corruption at the highest levels. As stablecoin regulation crystalizes, blockchain innovators must pivot toward compliance-centric designs and explore emerging niches in DeFi, governance, and transparency tools. For market participants seeking the next crypto frontier, the evolving U.S. regulatory landscape offers both constraints and fresh opportunities—rewarding those who balance innovation with ethical and technical rigor.
