The 🔥GENIUS🔥 Act is a U.S. legislation aimed at regulating stablecoins, representing a significant step toward clarifying the regulatory framework for these currencies in the United States. Here are some key points about this law 🔔
- *What does the GENIUS Act mean?*: It refers to the "National Innovation Guidance and Creation Act for U.S. dollar-backed stablecoins," aiming to establish a comprehensive regulatory framework for stablecoins backed by the U.S. dollar.
- *Importance of the law*: This law is important as it provides consumer protection and sets clear standards for the stablecoin industry, which can contribute to enhancing financial stability and innovation in this sector.
- *Stages of passing the law*: The law has passed
The bill passed in several stages, including voting in the U.S. Senate, where it was approved by a majority of 68 votes to 30 votes.
- *Key requirements*: The law includes several requirements, such as:
- *Stablecoin reserves*: Stablecoins must be backed 1:1 by the U.S. dollar or high-quality short-term liquid assets like treasury bonds.
- *Disclosure and auditing*: Stablecoin issuers are required to provide monthly disclosures and annual audits to ensure transparency and compliance.
- *Prohibition of yield-bearing stablecoins*: The law prohibits the issuance of stablecoins that yield returns, contributing to the protection of consumers and traditional banks.
- *Potential impact*: This law could help enhance the United States' position as a center for financial innovation and digital currencies, increasing demand for U.S. treasury bonds.
This law is expected to significantly impact the stablecoin industry in the United States and could have positive effects on consumers and investors in this sector...
That's all, my dear friends 🤗🌹💥
