#GENIUSActPass The US Senate has passed the GENIUS Act, a landmark bill regulating stablecoins, with a 68-30 vote. This legislation marks a significant step toward establishing federal rules for stablecoin issuers. The GENIUS Act sets clear requirements, including¹ ²:

- *Full Reserve Backing*: Stablecoins must be fully backed by US dollars or similarly liquid assets.

- *Audits and Compliance*: Issuers with over $50 billion in market capitalization must undergo annual audits, and comply with anti-money laundering regulations.

- *Consumer Protection*: The bill prioritizes consumer protection, safeguarding stablecoin holders in bankruptcy proceedings.

*Key Provisions:*

- *Regulatory Framework*: The GENIUS Act establishes a comprehensive federal framework for fiat-backed stablecoins.

- *Licensing*: Clear federal or state licensing requirements for stablecoin issuers.

- *Prohibition on Algorithmic Coins*: The bill prohibits algorithmic stablecoins.

*Next Steps:*

- *House of Representatives*: The GENIUS Act now moves to the House, where it may face reconciliation with the STABLE Act.

- *Potential Impact*: The bill's passage could lead to a $3.7 trillion stablecoin market by 2028, according to Treasury Secretary Scott Bessent.³

*Reactions:*

- *Support*: Senator Bill Hagerty, the bill's sponsor, sees the GENIUS Act as a step toward making the US the "crypto capital of the world".