#GENIUSActPass

What you need to know about the GENIUS Act, a bill to regulate cryptocurrencies

The Senate voted 66-22 on Monday night to advance the GENIUS Act, a bill aimed at regulating certain cryptocurrencies.

The bill faced some Democratic opposition in recent weeks due to President Donald Trump's cryptocurrency initiatives, but ultimately gained the support of 16 Democrats, including Senator Cory Booker, DN.J., and Senator Adam Schiff, Democrat from California.

The industry-backed measure establishes rules aimed at stablecoins, a type of cryptocurrency linked to the value of another asset, often the US dollar.

Supporters praised the bill as a means to protect consumers and establish industry standards, which could allow such cryptocurrencies to become a common tool for digital payments and other financial instruments.

Critics, however, warned that the bill does not address concerns about conflicts of interest exemplified by Trump, and risks endangering consumers and the economy at large with a weak set of rules.

"This sets the stage for these assets to become mainstream," said Christian Catalini, founder of the MIT Crypto Economics Lab, who supports the measure, in a statement to ABC News.

What is the GENIUS Act?

The GENIUS Act refers to the issuance and exchange of stablecoins, a form of digital currency backed by another form of currency such as the US dollar or a commodity like gold.

Stablecoins are designed to be less volatile than other forms of cryptocurrencies, which can experience large price swings and, in turn, pose difficulties for individuals using them to facilitate a purchase or sale.

The bill sets standards for stablecoin issuers, including the obligation for companies...