First Legislation for Crypto.. What is Law #GENIUS for Regulating Stablecoins?
The approval of the U.S. Senate for Law #GENIUS regarding the regulation of stablecoins has led to a boom in the cryptocurrency community as the first crypto legislation in the United States.
The U.S. Senate voted 68 to 30 in favor of passing the GENIUS Act.
♦️What is the GENIUS Act?
The GENIUS Act relates to the issuance and exchange of stablecoins, a form of cryptocurrency backed by another currency, such as the U.S. dollar or a commodity like gold.
Stablecoins are designed to be less volatile than other forms of cryptocurrency, which can experience significant price fluctuations.
♦️Purpose of the Project
This provision aims to protect consumers who may be unable to withdraw their funds in the event of a rapid and widespread sell-off of currencies.
As part of separate efforts to protect consumers, this measure requires issuers to give currency holders priority in repayment in the event of bankruptcy, and it obliges issuers to comply with certain anti-money laundering rules and anti-terrorism sanctions.
♦️Why is the Law Important?
This law establishes the rules governing the operation of stablecoins, a type of cryptocurrency linked to the value of another asset, often the U.S. dollar.
