#GENIUSActPass

In a significant legislative precedent, the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) in a historic vote of 68-30, making it the first federal law to regulate the operation of stablecoins in the United States.

What distinguishes this law?

1:1 Reserve: The law requires stablecoin issuers to maintain a cash reserve equivalent to the value of the issued currency, thereby enhancing confidence in market stability.

Transparency and Auditing: The law mandates periodic financial reports and independent audits for issuers whose trading volume exceeds $50 billion.

Consumer Protection: The law provides mechanisms to protect users from potential risks and prohibits members of Congress and some executives from owning or issuing stablecoins to avoid conflicts of interest.

Challenges and Criticisms

Despite the law's support from many members of Congress, some opposing voices, such as Senator Elizabeth Warren, argued that the law does not meet the necessary standards to protect consumers from potential risks.

Next Steps

After the law's passage in the Senate, it now moves to the House of Representatives for discussion and approval, before being signed by the president to become effective legislation.