#GENIUSActPass

Here’s a concise note on the GENIUS Act as featured by Binance:

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🏛️ What is the GENIUS Act?

• Officially known as the Guiding and Establishing National Innovation for US Stablecoins Act, it passed the U.S. Senate on June 17, 2025 by a 68–30 bipartisan vote .

• Represents the first federal regulatory framework for stablecoins in the U.S., targeting a rapidly growing market now valued around $250 billion .

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🏦 Key Provisions

• Full-reserve requirement: All stablecoins must be backed 1:1 by liquid assets (e.g., USD, Treasury bonds).

• Regular audits & transparency: Monthly (or annual for larger issuers) audits and reserve disclosures to consumers .

• Consumer protections & AML: Aligns stablecoin issuers under federal anti-money‑laundering rules and places stablecoin debtors above other creditors in insolvency cases .

• Issuer eligibility & branding rules: Banks, fintechs, and retailers can issue stablecoins, though they can’t use misleading terms like “US” or “FDIC” in branding .

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🚨 Controversy & Criticism

• Ethical concerns: Critics including Senator Elizabeth Warren argue the Act could benefit President Trump and his family’s crypto ventures, particularly World Liberty Financial .

• Privacy & oversight gaps: Some Democrats opposed the Act over insufficient anti-corruption and national-security protections, citing missing provisions for foreign stablecoin issuers and AML enforcement .

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🔜 Next Steps for the GENIUS Act

• The bill now moves to the U.S. House of Representatives, where it is expected to be reconciled with the House’s own STABLE Act—a process likely to continue into the summer .

• If enacted into law, it will establish federal control through the Treasury, CFPB, and FTC—paving the way for institutional stablecoin adoption .

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