The U.S. Senate is set to vote on the GENIUS Act, a significant stablecoin legislation requiring bipartisan support amid tensions between Democrats and Republicans. The bill aims to ensure stablecoins are fully backed by U.S. dollars and short-term Treasury assets, but faces opposition from within both parties regarding its provisions and implications.

Treasury Secretary Scott Bessent projected that the U.S. dollar stablecoin market could exceed $2 trillion by 2028 with legislative support, following the Senate's advancement of the GENIUS Act. This legislation mandates that stablecoins be fully backed by U.S. dollars and includes annual audits for large issuers, aiming to enhance the global use of the U.S. dollar.