#GENIUSAct *#GENIUSAct* is a legislative proposal aimed at establishing the first comprehensive legal framework for stablecoins in the United States, called the *Guiding and Establishing National Innovation for U.S. Stablecoins Act*. It was introduced by Senator Bill Hagerty (R-TN) on February 4, 2025, and has bipartisan support.
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📌 Key Objectives of the GENIUS Act
- *Custodial Fund Requirements*: Requires stablecoin issuers to hold 100% of their custodial funds (U.S. dollars and short-term government bonds).
- *Market Exchange and Specific Rules*: Requires stablecoin issuers to publish monthly custodial fund reports and annual reporting.
- *New Issuer Licensing*: Provides specific procedures and legal guidelines for new issuers to obtain custodial certificates.
- *Advertising Restrictions*: Prohibits advertising that stablecoins are government-backed or FDIC-protected.
- *National Security and AML Laws*: Stablecoin issuers are required to comply with anti-money laundering and counter-terrorism laws.
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🏛️ Legislative Progress
- *March 13, 2025*: The Senate Banking Committee approved the GENIUS Act by a vote of 18-6.
- *May 19, 2025*: The Senate approved the bill by a vote of 66-32.❤️