#GENIUSActPass

The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins Act, has passed the US Senate with a bipartisan vote of 68-30. This landmark legislation aims to regulate stablecoins, a type of cryptocurrency pegged to the value of a traditional currency like the US dollar.

Key Provisions:

- *Full Reserve Backing*: Stablecoin issuers must back their coins with US dollars or similarly liquid assets.

- *Audits and Compliance*: Issuers with over $50 billion in market capitalization must undergo annual audits, and foreign entities like Tether must comply with regulations.

- *Consumer Protection*: The bill prioritizes stablecoin holders in bankruptcy proceedings and bars non-financial public companies like Meta and Amazon from issuing stablecoins unless they meet specific risk and privacy standards.

Next Steps:

- *House of Representatives*: The bill now moves to the House, where it may be voted on or reconciled with the House's own stablecoin bill, the STABLE Act.

- *Potential Impact*: The GENIUS Act could pave the way for a $3.7 trillion stablecoin market by 2028, according to Treasury Secretary Scott Bessent.

Reactions:

- *Supporters*: Senator Bill Hagerty, a key proponent, believes the bill will make the US a global leader in crypto, enabling near-instant payments.

- *Critics*: Some Democrats opposed the bill due to concerns about Trump's connections to the crypto industry, particularly World Liberty Financial's stablecoin.