The US Senate has moved closer to regulating cryptocurrencies by passing the GENIUS Act, which sets rules for stablecoins.
Overview of the GENIUS Act
The GENIUS Act, supported by a 68-30 vote, is seen as a significant step towards legitimizing cryptocurrencies. The legislation requires stablecoins to hold full reserves and undergo monthly audits, assigning oversight to the Treasury Department instead of the Federal Reserve.
Shift Towards Crypto Legitimacy
With the passage of the GENIUS Act, the cryptocurrency sector, which has long been viewed skeptically, is poised for federal recognition. "To modernize our payment system and restore our nation’s competitive edge, we must act now," said Senator Bill Hagerty, the bill's lead sponsor.
Divided Opinions in the Senate
Despite bipartisan support, several top Democrats opposed the bill due to the absence of anti-corruption provisions. Senator Elizabeth Warren called it 'thin regulation,' warning it could lead to mistakes similar to the 2008 financial crisis.
The passage of the GENIUS Act signifies a shift in Washington's attitude towards cryptocurrencies, though questions remain about the need for stricter oversight.
