#GENIUSActPass The GENIUS Act, which aims to regulate stablecoins in the US, has passed the Senate with a 68-30 vote. This bill, introduced by Senator Bill Hagerty and co-sponsored by Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis, establishes a federal regulatory framework for fiat-backed stablecoins. Key provisions include ¹ ²:
- *Requirements for Stablecoin Issuers:*
- 1:1 dollar-backed reserves
- Monthly disclosures and audits
- Clear federal or state licensing
- Prohibition on algorithmic coins
- *Regulatory Oversight:*
- Treasury Secretary authority over the framework
- Potential split oversight among Federal Reserve, Comptroller of the Currency, and other agencies in the House version (STABLE Act)
The GENIUS Act's passage is seen as a significant step towards creating a regulated space for stablecoins, potentially paving the way for increased adoption and growth in the digital asset market. The bill's supporters argue it will ¹ ³:
- *Protect Consumers:* By establishing clear rules and guardrails for stablecoin issuers
- *Enable Innovation:* By providing a regulatory framework for private entities to issue digital dollars
- *Safeguard the Dominance of the US Dollar:* By promoting the use of dollar-backed stablecoins
However, some critics argue that the bill may facilitate Trump's crypto corruption and legitimize what amounts to a massive scam. The bill's future remains uncertain as it moves to the House of Representatives for consideration ³.