#GENIUSActPass The American Senate Adopts the GENIUS Act: A Regulatory Framework for Stablecoins.

The American Senate has taken a major step by passing the GENIUS Act with a vote of 68 to 30, thereby establishing a regulatory framework for stablecoins. This historic decision aims to enhance trust and stability in the stablecoin ecosystem.

*Key Requirements of the Act*

The GENIUS Act imposes several strict requirements on stablecoin issuers, including:

- Reserves: issuers will be required to hold reserves in liquid assets, such as Treasury bills and cash, to ensure the stability of stablecoins.

- Public Disclosure: issuers will be required to publish the composition of their reserves monthly to ensure transparency.

- Annual Audits: large issuers will be subject to annual audits to ensure compliance with regulatory requirements.

- Interest Prohibition: stablecoin holders will not be able to earn interest or returns.

- Legal Compliance: issuers will need to have technical capabilities to freeze or seize tokens in case of non-compliance with the law.

*Market Impact*

The adoption of the GENIUS Act could have a significant impact on the stablecoin market, encouraging innovation and trust in digital finance. Major companies like Visa, Amazon, and Mastercard are already exploring the issuance of stablecoins.

*Next Steps*

The GENIUS Act will need to be voted on by the House of Representatives, followed by the STABLE and CLARITY acts. Final approval is expected by summer. At Binance, we believe that stablecoins will play a key role in the future of digital finance, facilitating cross-border payments, regulated DeFi innovation, and global trust in digital finance.