#USStablecoinBill

The stablecoin bill shakes Washington

Stifled innovation or enhanced security?

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

Nine Democratic senators—who initially supported it—have withdrawn their backing, citing national security concerns and anti-money laundering efforts.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