#GENIUSActPass
In a historic move, the U.S. Senate approved the GENIUS Act, the first comprehensive regulatory framework for stablecoins, after months of negotiations between the two parties.
🔹 Highlights of the law:
✅ Requiring stablecoin issuers to maintain full reserves in liquid assets such as the U.S. dollar and short-term Treasury bonds.
✅ Imposing monthly disclosures to ensure transparency and compliance with anti-money laundering laws.
✅ Enhancing investor protection from potential financial risks.
🔹 Why is this law important?
🚀 Stablecoins have become an essential part of the digital financial system, surpassing transaction volume of $28 trillion in 2024.
📊 The law grants stablecoins regulatory legitimacy, which may increase their adoption in major financial institutions.
⚖️ Despite its passage, there is still debate over its impact on the freedom of innovation in the crypto sector.
🔹 Reactions:
- Some Democrats expressed concerns about conflicts of interest, especially with former President Donald Trump's ties to cryptocurrency companies.
- The crypto community sees the law as a positive step, but it may impose restrictions on some emerging projects.
💡 Advice for investors: Keep a close eye on developments regarding this law, as it may directly impact the future of stablecoins and related investment strategies.