#GENIUSAct The **GENIUS Act** (Guiding and Establishing National Innovation for U.S. Stablecoins) is a bipartisan legislative effort to regulate stablecoins, a type of cryptocurrency pegged to stable assets like the U.S. dollar. Below is a detailed overview of its key aspects, recent developments, and controversies:
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### **Key Provisions of the GENIUS Act**
1. **Consumer Protections**
- Requires 100% reserve backing for stablecoins (U.S. dollars, short-term Treasuries, or similarly liquid assets).
- Mandates monthly public disclosure of reserve compositions and annual audited financial statements for issuers with >$50B market cap.
- Prohibits misleading claims (e.g., false government backing or FDIC insurance).
2. **Anti-Money Laundering (AML) Measures**
- Treats stablecoin issuers as "financial institutions" under the Bank Secrecy Act, subjecting them to AML regulations .
3. **State and Federal Coordination**
- State-regulated issuers must align with federal standards or face oversight if they exceed $10B in issuance.
4. **Insolvency Safeguards**
- Prioritizes stablecoin holders’ claims over other creditors in bankruptcy proceedings.
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### **Recent Progress**
- **Senate Vote (May 19, 2025)**: Advanced 66-32 in a procedural cloture vote, with 16 Democrats supporting it despite initial opposition.
- **Bipartisan Support**: Led by Senators Bill Hagerty (R-TN), Kirsten Gillibrand (D-NY), and Cynthia Lummis (R-WY), but faces division within both parties.
- **Next Steps**: A full Senate vote is expected after Memorial Day recess, with potential amendments .