The U.S. Senate has passed the GENIUS Act, marking a significant step in stablecoin regulation with a 68-30 vote.
Passage of the GENIUS Act
The U.S. Senate has passed the GENIUS Act, representing a key milestone in stablecoin regulation. This legislation introduces the country's first federal framework for these assets and is expected to impact major digital assets and stablecoin infrastructure. The bill received 68 votes in favor and 30 against. Key supporters, like Sen. Kirsten Gillibrand, emphasized the importance of this legislation for the industry.
CITE_W_A: "This legislation is a crucial step forward in establishing a federal regulatory framework for stablecoins, promoting innovation while ensuring public trust." - Kirsten Gillibrand
Industry Reactions to the Act
The act is seen as likely to significantly impact stablecoins like USDT, USDC, and DAI, encouraging more structured institutional engagement. Industry reactions, including support from the Independent Community Bankers of America, indicate a readiness for collaboration with Congress. However, regulatory agencies have expressed concerns over the risks associated with rapid stablecoin growth.
Historical Influences of the GENIUS Act
Similar regulations, like New York's BitLicense and the EU's MiCA, have historically led to increased compliance costs but also enhanced institutional adoption. Experts predict that clear regulations could lead to greater inflows into compliant assets and elevate the importance of regulated exchanges and infrastructure tokens like ETH.
The passage of the GENIUS Act marks a significant step for stablecoin regulation in the U.S., and its impact will be closely monitored by both the market and stakeholders moving forward.
