▶️The U.S. Senate has passed the GENIUS Act on June 17, 2025, with a bipartisan vote, marking a significant step towards regulating stablecoins. Here's a breakdown of the key provisions and next steps :
👉- Key Provisions:
👉- Dual Licensing: Issuers must obtain both federal and state licenses
👉 - Reserve Requirements: 1:1 backing with cash or Treasuries to ensure stability
👉 - Audits and Disclosures: Regular audits and public reserve disclosures for transparency
👉 - Consumer Protections: Redemption rights and insolvency protections for consumers
👉 - AML Compliance: Issuers classified as financial institutions for anti-money laundering and sanctions compliance
👉- Restrictions: Non-financial public companies face restrictions on issuing payment stablecoins
👉- Disclosure Requirements: Senior officials must disclose large stablecoin holdings
👉- Next Steps:
👉- The bill has been passed to the House of Representatives for review and reconciliation with the STABLE Act
🟢- The House must decide whether to adopt the Senate's version or propose its own
The GENIUS Act's passage provides crucial regulatory clarity for the stablecoin industry, potentially boosting confidence and stability in the market. Senator Bill Hagerty led the bill through the Senate, thanking senators on both sides of the aisle for their support .