The US Senate has made an important move in regulating stablecoins by voting to end debate on the GENIUS Act.
What is the GENIUS Act
The GENIUS Act mandates that stablecoins must be fully backed by US dollars or similarly liquid assets. Issuers with a market value exceeding $50 billion will be required to undergo annual independent audits. The bill also tightens rules on stablecoins issued abroad.
Senators' Reactions to the Bill
Senate Banking Committee Chair Tim Scott called the vote a win for innovation and national security, stating, 'Let me be clear, this did not happen by accident. It happened because we led.' Several Democrats, including Chuck Schumer and Elizabeth Warren, opposed the bill, while others like Ruben Gallego supported it.
Next Steps for Bill Passage
With cloture secured, Senate leaders plan to hold the final vote on Monday. If the Senate approves the bill, it will move to the House of Representatives, where lawmakers have already advanced their own proposal. The Senate and House versions differ on oversight and treatment of major foreign issuers.
The passage of the GENIUS Act in the US Senate could lead to significant changes in the regulation of the stablecoin market, and all eyes are now on the final vote and subsequent steps.
