In the cryptocurrency space, the U.S. Senate recently passed a landmark piece of legislation—the (GENIUS Stablecoin Bill).
The passage of this bill marks an important step in regulatory reform for the digital asset industry in the U.S.
The Senate passed the bill with a vote of 68 in favor and 30 against, submitting it to the House for deliberation. This legislation, led by Republican Senator Bill Hagerty from Tennessee, aims to establish a comprehensive U.S. regulatory framework for stablecoins pegged to the value of the dollar.
Core Content of the Bill
(GENIUS Stablecoin Bill) primarily targets payment stablecoins, which are explicitly excluded from the classifications of securities or commodities, providing greater legal protection for issuers.
The bill stipulates
Only entities registered and licensed in the U.S. can legally issue payment stablecoins.
These entities can be subsidiaries of insured deposit institutions, OCC-approved and regulated federal qualified non-bank payment stablecoin issuers, or state-qualified issuers established under state law and approved by state payment stablecoin regulatory authorities.
Reserve Assets and Transparency Requirements
The bill imposes strict requirements on the reserve assets of stablecoins, which must be backed at a 1:1 ratio, including qualified assets such as U.S. dollars, insured deposits, and short-term U.S. Treasury bills.
Additionally, the bill prohibits the rehypothecation of reserves and requires that reserves be segregated from operating funds to prevent improper investment practices.
To ensure transparency, issuers must publicly disclose the composition of reserves monthly, certified by the CEO or CFO, and these disclosures must be reviewed by a certified public accounting firm.
Anti-Money Laundering and Foreign Issuer Regulation
The bill requires issuers to implement Anti-Money Laundering (AML) programs and have the technical capacity to comply with U.S. legal orders.
For stablecoins issued by foreign entities, the bill stipulates that these issuers must come from jurisdictions with comparable systems and hold sufficient reserves in U.S. financial institutions to meet the liquidity needs of U.S. customers.
This regulation aims to ensure that foreign issuers also comply with U.S. regulatory standards.
Impact and Outlook
The passage of the (GENIUS Stablecoin Bill) establishes a clear legal framework for the issuance and circulation of stablecoins, which not only helps protect cryptocurrency participants but also promotes the healthy development of the cryptocurrency industry.
With the House's deliberation, this bill may be further refined, providing a new model for the global development of stablecoins.
The passage of this bill is a significant victory for the digital asset industry, marking an important step for the U.S. in cryptocurrency regulation.
As the legal framework gradually improves, the issuance and use of stablecoins will become more regulated, laying a solid foundation for the long-term development of the industry.