#GENIUSActPass The GENIUS Act relates to the issuance and exchange of stablecoins, a form of digital currency backed by another currency such as the US dollar or a commodity like gold.

Stablecoins are designed to be less volatile than other cryptocurrencies, which can have significant price fluctuations and thus pose challenges for individuals using them to buy or sell.

The bill establishes rules for stablecoin issuers, including a mandatory requirement for companies to hold a reserve of underlying assets for this cryptocurrency. This regulation aims to protect consumers, who would otherwise risk being unable to withdraw cash during a rapid and widespread coin sell-off.

In a separate effort to protect consumers, this measure will require issuers to prioritize repayment to coin holders in the event of bankruptcy. The measure also mandates that issuers comply with certain anti-money laundering rules and counter-terrorism sanctions.

Supporters of the GENIUS Act welcome this measure as a first effort to formalize an important segment of the cryptocurrency industry, providing consumer protection, allowing traditional financial companies to participate, and fostering the development of the digital currency market.

"This opens the floodgates," Catalini said. "You will see the participation of many issuers. Consumers will have more choices. This will bring more competition and innovation in payments."