#GENIUSActPass The GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins Act, has passed the US Senate with a bipartisan vote of 68-30. This landmark legislation establishes a regulatory framework for payment stablecoins, focusing on consumer protection and national security. Key provisions include ¹ ²:

- *Stablecoin Backing*: Requires stablecoins to be fully backed by US dollars or similarly liquid assets.

- *Audits and Compliance*: Mandates annual audits for issuers with over $50 billion in market capitalization and compliance rules for foreign entities.

- *Non-Financial Public Companies*: Bars companies like Meta and Amazon from issuing stablecoins unless they meet specific risk and privacy standards.

- *Bankruptcy Proceedings*: Gives stablecoin holders "super-priority" in bankruptcy proceedings.

The bill's passage marks a significant step toward establishing federal rules for stablecoins. However, it still needs to be reconciled with the House's STABLE Act, which has different provisions on state versus federal oversight and treatment of foreign issuers. The GENIUS Act's potential impact includes ¹ ³:

- *Regulatory Clarity*: Providing a clear framework for stablecoin issuers and users.

- *Consumer Protection*: Enhancing protection for consumers through strict regulations.

- *US Dollar Dominance*: Extending US dollar dominance online through regulated stablecoins.

- *Crypto Market Growth*: Potentially driving growth in the crypto market, with projections of a $3.7 trillion stablecoin market by 2028.