The GENIUS Act was passed by the U.S. Senate with a vote of 68-30, receiving positive reactions from key players in the cryptocurrency industry, including Ripple CEO Brad Garlinghouse.
Brad Garlinghouse’s Reaction to the GENIUS Act
Garlinghouse termed the passage of the GENIUS Act as 'a truly historic moment.' He noted that this is the first major financial bill since Dodd-Frank and emphasized that the cryptocurrency industry has long been waiting for clear rules.
Key Provisions of the GENIUS Act
The bill will establish a federal framework for stablecoins, allowing only authorized entities like banks to issue dollar-backed cryptocurrencies. It also requires stablecoin issuers to publish monthly disclosures of reserve composition and undergo annual external audits.
Impact on the Cryptocurrency Market
Proponents of the legislation argued that it would promote innovation in the cryptocurrency sector and ensure dollar dominance. Support from 18 crypto-friendly Democrats also played a crucial role in the bill's passage.
The passage of the GENIUS Act marks a significant step towards regulating the cryptocurrency market, potentially providing greater security for consumers and clarity for industry participants.
