#GENIUSActPass

This legislation aims to create a clear regulatory framework for StableCoins in the United States. The main aspects of the Genius Act include:

Defining stablecoin payments: It defines them as digital assets linked to a fixed monetary value, particularly the US dollar, used for payment or settlement.

Licensing and reserve requirements: It establishes procedures for institutions to apply for licenses to issue stablecoins and implement reserve requirements, meaning that stablecoin issuers must maintain sufficient reserves to back their tokens.

Regulatory authority: It grants regulatory authority to existing federal organizations such as the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC).

Prioritizing StableCoin holders in bankruptcy: It gives StableCoin holders a higher priority in the event of a bankruptcy of the custodian or issuer.

The passage of the Genius Act in the Senate represents an important step toward clearer cryptocurrency regulation, now drawing the attention of the House of Representatives, which has its own version of Stablecoin legislation, the Stable Act. Congress aims to complete the legislation by August.