#GENIUSActPass The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins Act, has passed the US Senate with a 68-30 vote. This landmark bill aims to regulate stablecoins, providing clarity on their issuance and use in the financial system.
*Key Provisions:*
- *Regulatory Framework*: Establishes a regulatory framework for payment stablecoins, requiring issuers to be subsidiaries of insured depository institutions or federal-qualified nonbank payment stablecoin issuers.
- *Reserve Requirements*: Mandates 1:1 backing for stablecoins, ensuring stability and transparency.
- *Anti-Money Laundering*: Includes provisions for regular audits and compliance with anti-money laundering regulations.
- *Consumer Protection*: Enhances consumer protection safeguards and limits tech companies' ability to issue stablecoins ¹ ².
*Next Steps:*
- The bill will now proceed to the House of Representatives, where it will be considered alongside the STABLE Act, a similar bill with some differences in regulatory oversight.
- The passage of the GENIUS Act marks a significant step towards establishing a clear regulatory environment for stablecoins in the US, potentially paving the way for increased adoption and innovation ³ ⁴.