#GENIUSActPass What Is the GENIUS Act?

An acronym for Guiding and Establishing National Innovation for U.S. Stablecoins, the GENIUS Act is the first U.S. bill that aims to regulate cryptocurrencies — in this case, stablecoins. Stablecoins are usually pegged 1:1 to the value of another asset, protecting them from the volatility seen in other cryptocurrencies like Bitcoin. But stablecoins aren’t immune to the usual risks of crypto investing. That’s why the GENIUS Act provides more guardrails for the currency by doing the following:

Establishing rules for stablecoin issuers like segregation of reserves, monthly audits and minimum liquid capital requirements.  

Creating anti-money laundering and anti-terrorism processes. 

Allowing stablecoins to be issued only to permitted parties. 

Granting the Department of Treasury, Federal Reserve, Office of the Comptroller of the Currency and FDIC greater regulatory power. 

Prioritizing stablecoin owners when a custodian or issuer files for bankruptcy. 

The overall idea is to make stablecoins an even more reliable currency to invest in, spurring the growth of the crypto economy.