#GENIUSActPass

The US Senate has passed the GENIUS stablecoin bill

The US Senate approved the stablecoin bill "Guiding and Establishing National Innovation for US Stablecoins" (GENIUS). The bipartisan support passed with a result of 68 votes in favor and 30 against.

"GENIUS lays the regulatory foundation for payment stablecoins. It will cement the dominance of the US dollar, protect consumers, and stimulate demand for Treasury bonds," said Republican Senator Bill Hagerty, the chief author of the bill.

The new law:

requires all stablecoins to be fully backed by liquid dollar assets;

obligates large issuers (capitalization over $50 billion) to undergo annual audits;

prohibits giants like Meta and Amazon from issuing their own stablecoins without meeting strict risk and privacy criteria;

guarantees stablecoin holders "super-priority" in the event of the issuer's bankruptcy.

US Treasury Secretary Scott Bessen supported the initiative.

"It is expected that by the end of the decade, the stablecoin market will grow to $3.7 trillion.

Despite the success in the Senate, the next step is a vote in the House of Representatives.