On June 17, the US Senate voted for the GENIUS Act, which establishes the first federal regulations for stablecoins in the nation. The passing of this bill was positively received by the cryptocurrency industry.
Key Provisions of the Bill
The GENIUS Act was introduced by Senator Bill Hagerty in February to regulate the $260 billion stablecoin market. The legislation requires that stablecoins be fully backed and their issuers undergo regular security audits. It also imposes limitations on algorithmic stablecoins and those without full backing.
Reactions to the Bill
Senator Kirsten Gillibrand, one of the bill's sponsors, stated: "The GENIUS Act will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar." Senator Hagerty added that "this is going to open the door for innovation in America like we've never seen before."
Democratic Opposition and Next Steps
Despite support for the bill, some Democrats opposed it and attempted to introduce amendments. There were efforts to prevent former President Trump's family from profiting from crypto ventures, but the final legislation only prohibits members of Congress and their families from doing so. The bill now moves to the Republican-controlled House of Representatives.
The passing of the GENIUS Act has significant potential to alter the role of stablecoins in the US financial system. The next step is its consideration in the House of Representatives.
