#GENIUSActPass

The U.S. Senate has passed the GENIUS stablecoin bill

The U.S. Senate has approved the "Guidance and Establishment of a National Framework for U.S. Stablecoins" (GENIUS) bill. Bipartisan support was seen with a result of 68 votes "in favor" and 30 votes "against".

"GENIUS establishes a regulatory framework for payment stablecoins. It will strengthen the dominance of the U.S. dollar, protect consumers, and stimulate demand for Treasury bonds," said Republican Senator Bill Hagerty, the bill's lead author.

The new law:

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

requires large issuers (market cap over $50 billion) to undergo annual audits;

prohibits giants like Meta and Amazon from issuing their own stablecoins without adhering to strict risk and security criteria;

ensures stablecoin holders have "high priority rights" in the event of issuer bankruptcy.

U.S. Treasury Secretary Scott Bessen has supported the initiative.

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

Although successful in the Senate, the next step is a vote in the House of Representatives.