The GENIUS Act refers to a proposed bill in the US Senate aimed at regulating stablecoins. Here are some key points about it ¹:
- Full Title: Guiding and Establishing National Innovation for US Stablecoins Act
- Purpose: Regulate the nearly $250 billion stablecoin market, currently dominated by Tether (USDT) and Circle's USDC (USDC)
- Requirements:
- Stablecoins must be fully backed
- Regular security audits
- Approval from federal or state regulators
- Only licensed entities can issue stablecoins
- Algorithmic stablecoins are restricted
- Status: The bill passed a procedural vote in the Senate with 66 votes in favor and 32 against, and it's now heading for debate on the Senate floor
- Backers: Republican Senator Cynthia Lummis is a key backer of the bill, while Democratic Senator Elizabeth Warren has expressed concerns about the bill's Anti-Money Laundering provisions and potential conflicts of interest involving Trump's crypto ventures
It's worth noting that the GENIUS Act has garnered attention from both supporters and critics, with some arguing it provides necessary clarity and others expressing concerns about its implications for the crypto industry.