#GENIUSActPass GENIUS Act Passes in U.S. Senate: A Milestone for Stablecoin Regulation

In a historic move for the cryptocurrency industry, the U.S. Senate has approved the GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—marking the first federal legislation to establish clear rules for stablecoins. The bipartisan bill passed with a 68-30 vote and now proceeds to the House for further discussion.

Key Provisions of the GENIUS Act

Full Reserve Backing: Issuers of stablecoins must maintain full reserve backing, ensuring that each token is fully backed by assets of equivalent value.

Monthly Audits: Companies are required to undergo monthly public audits to maintain transparency and accountability.

Anti-Money Laundering Compliance: Issuers must adhere to strict anti-money laundering laws, aligning with existing financial regulations.

Expanded Issuer Eligibility: The bill opens the door for various entities, including banks, fintech firms, and major retailers, to launch their own stablecoins or integrate them into payment systems.

Implications for the Financial Sector

Senator Bill Hagerty (R-Tenn.), the bill’s chief sponsor, emphasized that the legislation is a vital step toward modernizing the nation's financial infrastructure and dismantling barriers between conventional financial markets and decentralized systems. Senate Banking Committee Chairman Tim Scott (R-S.C.) added that the bill represents a bold step forward for financial