#GENIUSActPass

Main Points of the GENIUS Act: Regulation of Stablecoins: The project defines rules for issuers of stablecoins, requiring them to be banks or regulated entities, with asset reserves in a 1:1 ratio to ensure stability and protect consumers in the event of bankruptcy. Consumer Protections: Includes safeguards such as priority of payment to holders of stablecoins in case of insolvency and compliance with the Bank Secrecy Act to combat money laundering. Restrictions: Prohibits stablecoins that pay interest and restricts large technology or non-financial companies from issuing stablecoins unless approved by a regulatory committee. Expected Impact: The legislation aims to promote innovation in digital payments, reduce transaction costs, and position the US as a leader in the stablecoin market, which could grow from $68,013,266,360,250 billion to $68,013,266,360.7 trillion by 2030, according to estimates. Current Status: Approval in the Senate: After overcoming a procedural hurdle on May 20, 2025 (66-32) and a filibuster, the project was approved in the Senate on June 17, 2025. The vote had bipartisan support, including 18 Democrats, despite initial resistance. Next Steps: The project now moves to the House of Representatives, where an alternative version called the STABLE Act is under consideration, which divides regulatory oversight among different agencies (Federal Reserve, Comptroller of the Currency, etc.), unlike the Senate version, which centralizes oversight in the Department of the Treasury. President Trump expressed a desire for the legislation to reach his desk before the August 2025 recess.