#USStablecoinBill The U.S. Senate is currently deliberating the bipartisan GENIUS Act, a significant piece of legislation aimed at establishing a federal regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar. The bill mandates that stablecoins be fully backed on a 1:1 basis with U.S. dollars or other approved high-quality liquid assets, ensuring price stability and consumer protection. It also introduces a dual regulatory approach, allowing smaller issuers to opt for state-level oversight if their market capitalization is under $10 billion.
Despite initial bipartisan support, the bill has encountered opposition from nine Senate Democrats who express concerns over inadequate provisions addressing money laundering and financial system risks.Critics also highlight potential loopholes for foreign issuers like Tether and the possibility of Big Tech companies gaining excessive influence in the financial sector. Proponents argue that the GENIUS Act balances innovation with regulatory safeguards, aiming to solidify the U.S. dollar's dominance in the digital asset space.