GENIUS Act could make U.S. dollar dominance in Web3 according to an analyst

On May 29, 2025 — Foresight Ventures released an overview on the recently enacted GENIUS Act.

The GENIUS ACT could make the U.S. dollar's dominant in the digital economy.

The legislation—officially titled the Guiding and Establishing National Innovation for US Stablecoins Act, recently cleared a key procedural hurdle in the Senate with a 66–32 vote and is now poised for final approval.

The procedural vote passed 66-32, overcoming previous bipartisan opposition and setting the stage for a full Senate vote after the Memorial Day recess.

Key Provisions of the GENIUS Act

The GENIUS Act aims to provide clear guidelines for stablecoin issuers, including:

• Mandating full 1:1 reserve backing with U.S. dollars or similarly liquid assets.
• Requiring monthly public disclosures of reserve compositions.
• Prohibiting the payment of interest to stablecoin holders to distinguish them from securities.
• Implementing anti-money laundering (AML) and counter-terrorism financing measures.
• Restricting non-financial public companies and foreign entities from issuing stablecoins without meeting stringent criteria.

The GENIUS Act introduces a streamlined regulatory framework that could remove major obstacles for stablecoin issuers.

By allowing a single state license to be deemed “substantially equivalent” nationwide, the Act simplifies compliance for startups, slashing red tape and enabling broader market access.

A cornerstone of the Act mandates that all stablecoin reserves be held in bankruptcy-remote trust accounts. This measure protects holders in the event of an issuer's collapse and aims to build public confidence in stable digital assets.

The GENIUS Act prohibits the payment of interest to users, which distinguish stablecoins from securities and deposit products.

By banning the payment of interest to users. Issuers, however, are permitted to use interest earned on reserves for business development and user acquisition, provided these incentives don’t function as direct returns.

“The GENIUS Act represents a significant advancement in stablecoin regulation, providing clarity and fostering innovation,” said Zac Tsui, Investment Director at Foresight Ventures. “Startups and fintech companies are now better positioned to develop compliant, secure, and user-centric financial solutions that can scale globally.”

The Act also reinforces the U.S. dollar’s role as the world’s digital settlement currency by requiring full 1:1 reserve backing with U.S. dollars or highly liquid assets.

Companies like Agora, whose AUSD stablecoin is backed by cash, Treasuries and repurchase agreements held in secure trusts, are being held up as a new standard for global transparency.

Beyond U.S. borders, some experts suggest the GENIUS Act could set a precedent for global regulation. “When the U.S. moves on stablecoin policy, the world watches,” said Andrei Grachev of DWF Labs, highlighting the broader impact of the bill on the international financial ecosystem.

Still, industry watchers are eyeing the upcoming final Senate vote closely, particularly given earlier resistance from key Democratic lawmakers. Despite this uncertainty, momentum is building behind the notion that stablecoins are no longer experimental, but rather a superior form of digital money—fast, transparent, and secure.

Foresight Ventures says it will continue working with its portfolio companies to navigate the evolving regulatory environment and seize new opportunities emerging from this landmark legislation.

The GENIUS Act is expected to undergo further debate and potential amendments before a final Senate vote. If passed, it will move to the House of Representatives for consideration.