The US Senate has passed the GENIUS Act, an important step towards regulating stablecoins. This marks the first significant legislative action in the realm of cryptocurrencies.
What Is the GENIUS Act All About?
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) lays the groundwork for regulating stablecoins in the United States. It requires that stablecoins be backed by real money such as U.S. dollars or liquid assets. Companies issuing stablecoins with a market cap over $50 billion will now need annual audits.
Limits for Big Companies
Tech giants like Meta and Amazon will face restrictions unless they meet specific financial and privacy standards. The bill also provides stablecoin users with high legal protection in the event of issuer bankruptcy, known as super-priority status.
Why This Vote Is a Game Changer?
This is the first time the Senate has passed meaningful legislation on cryptocurrencies. Earlier legislative efforts had failed due to disagreements. Now, experts note that the U.S. is beginning to catch up in crypto regulation and establish itself as a global leader in this space.
Following the passage of this bill, the future of stablecoin regulation rests with the House of Representatives. Time is ticking, and the bill is expected to be signed before the end of summer.
