The passage of the GENIUS Act by the U.S. Senate represents a significant step towards establishing a federal regulatory framework for stablecoins. This bill, which received support from 66 senators with 32 votes against, aims to regulate stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar.
Key provisions of the GENIUS Act:
Ensuring reserves: Stablecoin issuers are required to maintain reserves in liquid and safe assets, such as Treasury bonds, providing a 1:1 backing.
Compliance with AML and KYC requirements: The bill requires issuers to comply with anti-money laundering and customer identification laws.
Priority for holders in the event of bankruptcy: Holders of stablecoins have a priority claim on the issuer's assets in the event of bankruptcy.
Restrictions for tech giants: Companies like Meta and Google will not be able to issue their own stablecoins without special approval to prevent the concentration of market power.
Opinions and criticism:
Supporters of the law consider it an important step towards the legalization and integration of stablecoins into the U.S. financial system, which could strengthen the dollar's position in the global market.
However, critics, including Senator Elizabeth Warren, express concern that the bill could benefit President Trump's financial interests, given his involvement in cryptocurrency projects such as the USD1 stablecoin and meme coins. Warren argues that the bill could exacerbate corruption and weaken financial stability.
Conclusion:
The GENIUS Act represents an attempt to establish clear rules for the stablecoin market, which could promote its growth and integration into the traditional financial system. However, it is important to ensure that regulation is fair and does not contribute to the increased influence of individuals or companies in the market.
The bill is now heading to the House of Representatives, where further discussion and possible amendments are expected.