#GENIUSActPass šš„ US Senate Approves Landmark GENIUS Act for Stablecoin Regulation šš„
The US Senate has passed the GENIUS Act with a bipartisan 68-30 vote š¤, marking a significant milestone in cryptocurrency regulation šļø. This bill establishes a regulatory framework for dollar-pegged stablecoins, providing clarity and protection for consumers š”ļø.
Key Provisionsšš
- Dual Licensingš: Issuers must obtain federal or state licenses to operate š¢.
- 1:1 Reserve Backing šø: Stablecoins must be backed by cash or short-term Treasuries š¦.
- Regular Auditsš: Issuers must undergo regular audits and disclose reserve details monthly š.
- Consumer Protectionsš„: Consumers have redemption rights, and issuers must have insolvency protections in place š”ļø.
- AML Complianceš«: Issuers are classified as financial institutions for anti-money laundering and sanctions compliance š.
- Restrictionsš§: Non-financial public companies are restricted from issuing payment stablecoins š«.
-Disclosure Requirements š: Senior officials must disclose large stablecoin holdings š.
What's Next šš
The GENIUS Act now heads to the House of Representatives for further consideration šļø. It must be reconciled with the House's STABLE Act before becoming law š.
Market Impactšš°
The passage of the GENIUS Act is expected to drive growth in the stablecoin market, potentially reaching $3.7 trillion by the end of the decade š. This regulatory clarity will enhance consumer protection, market transparency, and reinforce the dollar's role in global finance šø.
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