#GENIUSActPass The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins, has passed the US Senate with a 68-30 vote. This bipartisan bill aims to establish a regulatory framework for stablecoins, providing clarity and protection for consumers. Here's what you need to know ¹ ²:

- *Key Provisions:*

- *Stablecoin Issuance*: Allows banks and certain tech companies to issue their own stablecoins, provided they meet specific regulatory requirements.

- *Reserve Requirements*: Stablecoin issuers must maintain adequate reserves, such as US dollars or Treasury bills, and offer stronger bankruptcy protections for bank depositors.

- *Disclosure*: Monthly disclosure of reserve compositions will be mandatory.

- *Impact:*

- *Increased Adoption*: Expected to drive massive demand for US Treasury bonds, potentially leading to increased adoption of stablecoins.

- *Regulatory Clarity*: Provides a clear regulatory framework, potentially leading to significant growth in the stablecoin market.

- *Economic Benefits*: Could increase demand for US Treasuries, lower government borrowing costs, and expand access to dollar-based digital assets globally.

- *Next Steps:*

- *House of Representatives*: The bill will now move to the House of Representatives for further consideration.

- *Signing into Law*: If passed, the bill will need to be signed into law by the President.

The GENIUS Act has garnered support from various stakeholders, including Senators Bill Hagerty, Tim Scott, and Kirsten Gillibrand, who co-sponsored the bill. However, some critics, like Senator Elizabeth Warren, have raised concerns about potential conflicts of interest and consumer protections ² ¹ ³.