#USStablecoinBill Stifled Innovation or Enhanced Security?

The GENIUS Act, aimed at establishing a regulatory framework for stablecoins in the United States, is facing political headwinds.

Nine Democratic senators—who initially supported it—have withdrawn their backing, citing concerns related to national security and anti-money laundering efforts.

Key points: The bill requires stablecoin issuers to hold 100% reserves, excluding algorithmic stablecoins and those issued by non-U.S. entities like Tether.

Banks could benefit from easier access to the stablecoin market, while innovative non-bank players may face greater challenges.