The U.S. Senate approved a bill on Tuesday that sets a regulatory framework for cryptocurrencies directly linked to the dollar, paving the way for a vote in the House of Representatives on the bill.
The bill, called the GENIUS Act, received support from both Democrats and Republicans and was approved with a vote of 68-30. The bill will now move to the Republican-controlled House of Representatives before being sent to President Donald Trump for signing into law.
The Senate's approval of the GENIUS Act marks a milestone in the regulation of cryptocurrencies in the United States, aligning with Trump's promises to enact crypto-friendly legislation.
Stablecoins are a type of cryptocurrency designed to maintain a stable peg to major currencies, typically the dollar. They are widely used to facilitate cryptocurrency transactions and have seen increased use in recent years.
Its supporters also claim that it can be used to send payments instantly. Currently, USDC from Circle and USDT from Tether are the largest stablecoins in the market.
The GENIUS Act, if approved, will require stablecoin issuers to back their coins with liquid assets such as the dollar and short-term treasury bonds. Issuers will also be required to publicly disclose the composition of their reserves each month.
However, despite the positive development of the bill, cryptocurrency markets remained under pressure. Bitcoin dropped by 2.1%, continuing its recent losses as risk appetite was hurt by the escalating conflict between Iran and Israel.$BTC
