#GENIUSActPass

The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins Act, has passed the US Senate with a 68-30 vote. This landmark bill aims to regulate stablecoins, establishing federal oversight for US dollar-pegged stablecoins and creating a regulated path for private entities to issue digital dollars with federal approval.

*Key Provisions:*

- *Full Reserve Backing*: Stablecoin issuers must fully back their coins with US dollars or similarly liquid assets.

- *Audits and Compliance*: Issuers with over $50 billion in market capitalization must undergo annual audits, and comply with anti-money laundering regulations.

- *Consumer Protection*: The bill includes safeguards to protect consumers and limits tech companies' ability to issue stablecoins.

- *Super-Priority in Bankruptcy*: Stablecoin holders will have priority over other creditors in bankruptcy proceedings.

*Next Steps:*

- The bill now moves to the House of Representatives, where it may be voted on or reconciled with the House's own stablecoin bill, the STABLE Act.

- The two bills differ on regulatory oversight, with the Senate's version centralizing authority with the Treasury, while the House's bill splits oversight among multiple agencies.

*Implications:*

- The passage of the GENIUS Act could potentially open the floodgates for companies to issue their own tokens, with projections suggesting a $3.7 trillion stablecoin market by 2028.

- The bill's supporters see it as a step towards establishing the US as a global leader in cryptocurrency regulation.