The final vote on the GENIUS Act in the US Senate is a pivotal event for stablecoin regulation, with potential industry-wide implications.
Goals and Contents of the GENIUS Act
The US Senate plans a final vote on the GENIUS Act, led by Senator Bill Hagerty. The bill proposes requirements for stablecoin issuers, including USD-backed reserves and regular audits. Key figures include Senate Majority Leader John Thune and Democratic Leader Chuck Schumer. The anticipated vote emphasizes bipartisan support and could reshape stablecoin industry norms. If passed, it will mandate audits for stablecoins with market caps over $50 billion.
Impact on the Stablecoin Market
The planned legislation might prompt widespread industry adjustments and bolster US onshore stablecoin supply. Leading stablecoins like Tether and Circle face new operational challenges. Financial implications involve potential increased demand for US Treasuries. It could foster greater industry compliance, enhancing investor protection protocols.
Industry Reaction to New Regulations
Tech players like Amazon and Walmart may respond by issuing their own stablecoins if the bill passes, potentially injecting capital into the sector. Stakeholders in the blockchain community are attentive, preparing for adjustments in response to potential regulatory clarity.
The final vote on the GENIUS Act could significantly reshape the regulatory landscape for stablecoins in the US and impact the entire industry.
