#GENIUSActPass The **GENIUS Act**—short for *Guiding and Establishing National Innovation for U.S. Stablecoins*—has officially passed the U.S. Senate with a **68–30 bipartisan vote** on June 17, 2025. This marks a **historic milestone** for crypto legislation in the U.S., especially for the regulation of **stablecoins**.
### 🔍 What the GENIUS Act Does
- **Legal Framework**: Establishes the first comprehensive federal rules for **USD-pegged stablecoins**.
- **Full Reserve Requirement**: Issuers must back stablecoins 1:1 with **liquid assets** like cash or short-term Treasuries.
- **Transparency**: Requires **monthly public audits** and strict **anti-money laundering (AML)** compliance.
- **Issuer Expansion**: Allows **banks, fintechs, and large retailers** to issue stablecoins under federal oversight.
- **Regulatory Authority**: Centralizes supervision under the **U.S. Treasury**, though the House version (STABLE Act) proposes shared oversight.
### ⚡ Why It Matters
- **Consumer Protection**: Aims to prevent collapses like TerraUSD by enforcing strict backing and transparency.
- **Market Confidence**: Could attract more institutional players and mainstream adoption.
- **Political Impact**: Tied closely to Trump’s crypto agenda, with critics raising concerns about potential conflicts of interest.
The bill now heads to the **House of Representatives**, where it will be reconciled with the STABLE Act. If passed there, it goes to President Trump’s desk for final approval. This could be the **turning point** for stablecoin legitimacy in the U.S. and globally.
Want to explore how this could affect USDC, DeFi, or your trading strategy? I’ve got you covered. 🔥📊