The GENIUS Act is a new legislation passed by the U.S. Senate to regulate stablecoins, representing the first federal regulatory framework for this type of digital asset. The law aims to establish strict rules that include full backing by cash reserves, monthly financial audits, and strict compliance with anti-money laundering laws.

The law was passed with a majority of 68 votes to 30, reflecting broad bipartisan support, but it still requires approval from the House of Representatives before it can become law. The law allows fintech companies and banks to issue stablecoins under direct government oversight, which could enhance the dominance of the U.S. dollar in digital markets.