#GENIUSActPass #GENIUSActPass

The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act, has passed the US Senate with a 68-30 vote. This landmark bill aims to establish a regulatory framework for stablecoins, providing clarity on issuance, reserves, and transparency.

*Key Provisions:*

- *Regulatory Framework*: The GENIUS Act establishes a federal regulatory framework for payment stablecoins, protecting consumers and strengthening national security.

- *Issuance Requirements*: Permitted issuers must be subsidiaries of insured depository institutions or federal/state-qualified nonbank payment stablecoin issuers, subject to federal or state regulation.

- *Backing Requirements*: Stablecoins must be backed 1:1 by U.S. Treasuries, with regular audits and anti-money laundering regulations ¹ ².

*Implications:*

- *Industry Confidence*: The GENIUS Act is expected to boost industry confidence, with major financial institutions exploring stablecoin issuance.

- *Global Financial System*: The legislation may solidify the dollar's role in the digital economy and lay the groundwork for a more structured global financial framework.

*Next Steps:*

- *House of Representatives*: The bill now moves to the House of Representatives for further consideration, with a potential August deadline for passage.

- *Potential Amendments*: Proposed amendments aim to prevent elected officials and their families from issuing stablecoins, addressing concerns about conflicts of interest ³.