#GENIUSActPass The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins Act, has passed the US Senate with bipartisan support, marking a significant step toward regulating stablecoins. Here's what's next and what the act entails ¹:
Key Provisions of the GENIUS Act
- *Full Backing*: Stablecoins must be fully backed by US dollars or similarly liquid assets.
- *Audits*: Issuers with over $50 billion in market capitalization must undergo annual audits.
- *Redemption Rights*: Clear rules for redeeming stablecoins.
- *Federal Licensing*: Establishes a federal licensing framework for stablecoin issuers.
What's Next?
- *House Vote*: The bill now moves to the House of Representatives, where it may face debate and potential reconciliation with the House's own stablecoin bill, the STABLE Act.
- *Presidential Signature*: If passed, President Trump is expected to sign the bill into law, given his support for stablecoin regulation.
Potential Impact
- *Stablecoin Market*: The GENIUS Act could lead to a more stable and secure stablecoin market, potentially driving growth and adoption.
- *Cryptocurrencies*: Projects like XRP and Bitcoin might benefit from clearer regulations and increased institutional investment ².