The GENIUS Act, which stands for Guiding and Enabling National Innovation for American Stablecoins, passed the U.S. Senate with a significant majority of 68 votes to 30. This bipartisan legislation aims to create a regulatory framework for stablecoins for payment, protect consumers, and enhance national security. Here’s what follows [3][4]:
- *Key Provisions*:
- *Support for Stablecoins*: Stablecoins must be fully backed by U.S. dollars or similar liquid assets.
- *Audits*: Issuers with a market capitalization exceeding $50 billion will face annual independent audits.
- *Regulatory Oversight*: Regulatory oversight will depend on the market value of the issuer, with those below $10 billion able to choose state-level regulatory oversight.
- *Impact*:
- *Market Growth*: Experts expect the legislation to lead to massive demand for U.S. Treasury bonds and an increase in the size of the stablecoin market.
- *Adoption*: The regulatory clarity provided by the GENIUS Act may lead to broader adoption of stablecoins, enabling instant payments.
- *Next Steps*:
- *House of Representatives*: The bill will move to the House of Representatives, where lawmakers will need to reconcile the Senate and House versions.
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