The U.S. Senate approved the GENIUS Act, which is considered the first comprehensive regulatory framework for dollar-pegged stablecoins, marking a pivotal moment in the regulation of the digital asset sector. The law requires stablecoin issuers to maintain liquid financial reserves such as cash and treasury bonds, along with monthly disclosures of those assets to ensure transparency and stability. The bill received broad bipartisan support, with 68 members in favor and 30 against, in a move that reflects a rare consensus on a highly sensitive issue. However, the law has sparked internal controversy due to what some Democrats view as loopholes related to conflicts of interest, particularly in light of the exemption of the president's position and family from certain congressional restrictions. Questions have also been raised about the potential for increased influence of major tech companies through this legislation. The law is now heading to the House of Representatives, where it is expected to undergo further discussions and possibly amendments before reaching the President's desk. This regulatory framework is anticipated to transform the digital currency landscape, as it opens the door for wider acceptance of stablecoins while maintaining standards of financial security and user confidence in the digital financial system.
