#GENIUSActPass The GENIUS Act, a bill regulating stablecoins, has passed the US Senate with a vote of 68-30. Introduced by Senator Bill Hagerty, the bill aims to establish a regulatory framework for payment stablecoins, requiring issuers to be subsidiaries of insured depository institutions or qualified non-bank payment stablecoin issuers.

*Key Provisions:*

- *Regulatory Framework*: The bill establishes a framework for payment stablecoins, ensuring issuers are regulated by federal or state authorities.

- *Reserve Requirements*: Stablecoins must be backed 1:1 with reserves like US dollars and short-term Treasury securities, which some observers believe could pose systemic risks to the US monetary system.

- *Anti-Money Laundering*: The bill includes provisions for Anti-Money Laundering measures and Know-Your-Customer requirements.

*Next Steps:*

- *House of Representatives*: The bill will now head to the House, where it will be compared to the STABLE Act, a similar bill.

- *Potential Concerns*: Some lawmakers and experts have raised concerns about the potential systemic risk posed by the reserve requirements.¹ ² ³

*Impact:*

- *Clarity and Stability*: Supporters believe the bill will provide clarity and stability to the stablecoin market.

- *Boost to US Dollar*: The bill's focus on US Treasuries as backing assets could drive demand for US debt and strengthen the dollar.