#MyTradingStyle The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins Act, has passed the US Senate with a vote of 68-30, marking a significant step towards regulating stablecoins in the United States. This bipartisan bill aims to establish a comprehensive federal framework for fiat-backed stablecoins, requiring issuers to maintain 1:1 dollar-backed reserves, conduct monthly disclosures, and undergo audits.

*Key Provisions:*

- *Stablecoin Backing*: Issuers must maintain 1:1 backing with US dollars or highly liquid short-term assets like Treasury bills.

- *Audits and Disclosures*: Annual audits for issuers with over $50 billion in market capitalization and monthly public disclosures to ensure solvency and consumer protection.

- *Ban on Interest-Yielding Stablecoins*: Prohibits stablecoins that might compete with traditional deposits.

- *Restrictions on Foreign Stablecoins*: Limits circulation of foreign-issued stablecoins in the US market without equivalent regulatory oversight.

*Next Steps:*

- The bill will now move to the House of Representatives, where it may be voted on or reconciled with the House's own stablecoin bill, the STABLE Act.

- If passed, the bill will provide regulatory clarity for stablecoin issuers and potentially drive massive demand for US Treasury bonds ¹ ².

*Impact:*

- The GENIUS Act could revolutionize the American stablecoin industry, strengthening the competitive position of the United States in the global crypto market.

- It may also consolidate the dollar's hegemony in the global crypto world, transforming stablecoins into pillars of American digital finance ³.