#GENIUSActPass

The GENIUS Act, a bill aimed at regulating stablecoins in the US, has seen significant developments recently. Here's an update on its status.

- *Cloture Vote*: The bill passed a critical cloture vote in the Senate with 66 votes in favor and 32 against, indicating bipartisan support. This vote allows the Senate to proceed to debate and potential amendments.

- *Bipartisan Support*: Sixteen Democrats shifted their support to the bill, signaling a growing consensus on stablecoin regulation. Senators Bill Hagerty, Kirsten Gillibrand, Cynthia Lummis, and Chris Van Hollen are key proponents of the bill.

- *Regulatory Framework*: The GENIUS Act aims to establish a comprehensive federal framework for stablecoin regulation, including.

- *Reserve Requirements*: Stablecoin issuers must maintain 1:1 backing with US dollars or highly liquid short-term assets like Treasury bills.

- *Transparency*: Monthly attestations and public disclosures are mandated to ensure solvency and consumer protection.

- *Ban on Interest-Yielding Stablecoins*: The bill includes a ban on yield-generating stablecoins that might compete with traditional deposits.

- *Restrictions on Foreign Stablecoins*: The amendment limits the circulation of foreign-issued stablecoins in the US market without equivalent regulatory oversight.

- *Next Steps*: The bill is expected to proceed to a final vote in the Senate, potentially as early as Wednesday, June 11 was mentioned in one source, but no date has been confirmed. If passed, it will head to the House, where a parallel effort, the STABLE Act, is gaining traction.

- *Criticism and Concerns*: Some critics, like Senator Elizabeth Warren and crypto commentator Richard Heart, argue that the bill could increase systemic risks and stifle decentralized finance innovation.

- *Potential Impact*: Proponents believe the bill could drive demand for US Treasury bonds, support financial stability, and reaffirm the US dollar's global dominance.