#GENIUSActPass What is the GENIUS Act?

It is a proposed law from the U.S. Senate known as the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (GENIUS Act). Its main goal is to create a federal regulatory framework for stablecoins – cryptocurrencies that maintain a fixed value, typically backed by the dollar.

Key points:

Stablecoins must have a 1:1 reserve with cash or U.S. Treasury bonds.

Mandatory monthly audits and public transparency in their reserves.

Compliance with anti-money laundering (AML/BSA) laws, sanctions, and federal oversight.

Issued only by regulated entities: federal or state banks or fintechs.

Stablecoins under this framework will not be classified as securities or commodities, avoiding regulatory duplication between the SEC and CFTC.

Legislative status as of June 2025

The Senate recently approved it with a vote of 68 to 30 on June 17, 2025.

Now the bill will move to the House of Representatives; if it passes, it will be sent to the President for signature and become law.

Implications and outlook

✅ Expected benefits:

Greater regulatory clarity: a single federal standard under clear oversight.

Enables institutional adoption of stablecoins: banks, fintechs, and large companies will be able to issue under clear rules.

May strengthen the role of the digital dollar and reduce payment costs, including fast and global micropayments.

Critiques and risks:

Several Democrats, including Elizabeth Warren, warn that it does not protect sufficiently against conflicts of interest (such as ties with the Trump family).

There are concerns that it may favor large corporations (Amazon, Walmart, banks), limiting competition in fintech.

Next steps

1. Debate and voting in the House of Representatives during the period leading up to the August recess.

2. If approved, it will be signed by the President, coming into effect.

3. Possible specific rules and detailed oversight by the Treasury, OCC, or other federal regulators.