$USDC What is the GENIUS Act?

The project name is an abbreviation for: "Guiding and Establishing National Innovation for U.S. Stablecoins", which means 'Guiding and Establishing National Innovation for U.S. Stablecoins'.

๐ŸŽฏ Its main objectives:

Regulate stablecoins (such as USDT and USDC) that are pegged to the value of the U.S. dollar.

Mandate the maintenance of a 1:1 liquidity in currencies or U.S. Treasury bonds, with monthly reporting on reserves.

Define the authorized entities for issuance, whether banks or licensed non-bank entities.

Enhance consumer protection and combat money laundering, through compliance with the Bank Secrecy Act.

Prevent exploitation of congressional members, but there is an exception for the president and his family, which has stirred debate and criticism from some Democrats like Elizabeth Warren.

๐Ÿ›ฃ๏ธ What now?

The law has now moved to the U.S. House of Representatives for further review before being sent to the president for signature.

It is expected to be merged with the STABLE Act in the House, and may be approved before the parliamentary recess in August.

---

โœจ Why is this event important?

The first comprehensive federal regulatory framework for stablecoins in the United States.

It provides legal clarity for the digital currency industry, enhancing trust and encouraging large companies and institutions (like Amazon, Walmart).