The US Senate has approved the GENIUS Act, introducing strict regulations for stablecoins and governing their operations within the country. This law marks the first federal legislation requiring stablecoin issuers to comply with Treasury and law enforcement regulations.
What is the GENIUS Act?
The GENIUS Act was introduced by Senator Bill Hagerty on February 4, 2025. It addresses the need for regulation of stablecoins pegged to fiat currencies, such as the US dollar.
New Requirements for Stablecoin Issuers
The law requires stablecoin issuers to register as financial institutions and adhere to anti-money laundering laws. This includes verifying account holders' identities and obligations to freeze wallets upon law enforcement requests.
Expanded Powers for the Treasury Department
The act enhances the role of the Treasury Secretary in monitoring stablecoin transactions and allows the Treasury to block operations involving foreign issuers. These measures aim to strengthen control over financial flows and prevent criminal activities.
The passage of the GENIUS Act marks a significant step forward in regulating the cryptocurrency market in the US. The law aims to create a safer environment for the use of stablecoins while increasing transparency in financial operations.
