On June 17, the US Senate passed the GENIUS Act, marking the first major cryptocurrency legislation to pass through the Senate.
Approval of the GENIUS Act
The GENIUS Act was approved by the US Senate with a vote of 68-30. Support came from some Democrats, with Republican Senator Bill Hagerty leading the vote process. He thanked senators from both parties for their support. The vote followed earlier approval of the bill several days before.
Key Provisions of the Act
Under the GENIUS Act, stablecoins must be fully backed by US dollars or assets that can be quickly converted into cash. Issuers valued over $50 billion would need to undergo annual independent audits. The Act also lays out rules for coins issued by companies outside the United States.
Approach to Stablecoins and Next Steps
The Act places restrictions on large publicly traded firms such as Meta and Amazon, prohibiting them from issuing stablecoins unless they meet specific financial safety and consumer data protection criteria. It also includes a bankruptcy provision that gives stablecoin holders “super-priority status” in case of insolvency. The bill now moves to the House of Representatives, where it is expected to be further considered.
The GENIUS Act approved by the Senate is seen as an important step towards establishing clear rules for cryptocurrencies in the US, with its future now dependent on the House of Representatives.
