The *GENIUS Act* (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) is a major bill currently under discussion in the U.S. Congress. Its primary objective is to establish a federal regulatory framework for stablecoins, cryptocurrencies backed by fiat currencies such as the U.S. dollar.
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🏛️ Objectives of the GENIUS Act
The bill aims to:
- *Require increased transparency*: Stablecoin issuers will be required to regularly disclose their reserves and guarantee 100% backing by liquid assets such as cash or Treasury bills.
- *Strengthen Regulatory Oversight*: Federal and state regulators will establish capital, liquidity, and risk management standards for stablecoin issuers, both bank and non-bank.
- *Protect consumers*: The bill prohibits the representation of stablecoins as being guaranteed by the U.S. government or insured by the FDIC, to avoid confusion among users.
- *Preventing Non-Compliant Foreign Issuers*: Foreign stablecoin issuers will not be able to offer their tokens in the United States unless they comply with U.S. laws.
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⚖️ Recent legislative progress
On May 20, 2025, the U.S. Senate passed a procedural motion by a vote of 66 to 32, allowing the GENIUS Act to advance to full Senate debate. This progress comes after amendments to address bipartisan concerns, including:
- *Conflict of Interest Restrictions*: The bill prohibits senior executive branch officials from launching stablecoins, with the exception of the president and vice president, leaving room for President Trump, whose family is involved in the industry through World Liberty Financial, to continue his activities.
- *Big Tech Restrictions*: Tech companies would be restricted from issuing stablecoins if they track users' financial data, unless users give explicit consent through the terms of service.