The U.S. Senate has passed the GENIUS Act, setting forth new rules for stablecoins, emphasizing financial innovation and security.
GENIUS Act Gains Senate Support
The GENIUS Act received bipartisan approval in the U.S. Senate, led by Senator Bill Hagerty. It progressed through the Senate Banking Committee, addressing concerns regarding foreign business entanglements. The act aims to establish clear regulatory frameworks for stablecoins.
New Regulatory Era Sparks Institutional Interest
No immediate funding allocations have been declared. However, regulatory approval signals heightened institutional participation in stablecoin issuance. U.S.-compliant assets are expected to see inflows, indicating market trust and increased compliance requirements.
Comparing GENIUS Act to EU's MiCA Framework
This legislative approval echoes the EU's 2023 MiCA framework, marking a regulated era for crypto products. Past U.S. attempts lacked this level of bipartisan support, making the GENIUS Act a distinctive effort. Experts suggest the act could establish a global benchmark for stablecoin regulation.
The passage of the GENIUS Act may significantly alter the landscape of the stablecoin market in the U.S. and globally, fostering increased institutional interest and enhancing the security of digital assets.
