The recent signing of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act marks a historic moment for the cryptocurrency sector in the US.
First Major Stablecoin Legislation
The GENIUS Act becomes the first significant legislative act signed by President Donald Trump during his second term. The act provides regulatory clarity for stablecoin issuers like Tether, Circle, and Ripple. It was initially passed by the Senate with a bipartisan vote of 68-30.
A New Era of Digital Finance in the US
The signing of the GENIUS Act allows the United States to take a significant step in digital finance leadership. Additionally, the House also passed the CLARITY and Anti-CBDC Acts, signaling a shift towards clearer regulations in cryptocurrency.
Requirements of the GENIUS Act for Stablecoin Issuers
The GENIUS Act requires stablecoin issuers to maintain a strict 1:1 reserve backing. Each digital dollar should be fully backed by a US dollar or equivalent low-risk asset. Issuers are required to obtain licenses and comply with anti-money laundering protocols.
The enactment of the GENIUS Act represents a vital step toward establishing clear regulatory frameworks for stablecoins in the US, thereby promoting stability and protecting investors.
