U.S. Stablecoin Bill Faces Political Turmoil Amid Regulatory Push
The U.S. Congress is advancing the GENIUS Act, a bipartisan bill aiming to establish a federal framework for stablecoins. It mandates 1:1 reserve backing, monthly audits, and segregation of customer funds. However, the bill has encountered political friction. Nine Senate Democrats withdrew support, citing insufficient anti-money laundering safeguards and concerns over foreign issuers like Tether .
The bill also restricts foreign-issued stablecoins from being treated as cash equivalents unless they comply with U.S. regulations . Despite these challenges, the GENIUS Act represents a significant step toward regulating digital assets in the U.S.