#GENIUNActPass Here’s a detailed breakdown of the GENIUS Act (S.1582), recently passed by the Senate:

🏛️ What It Is

GENIUS Act stands for Guiding and Establishing National Innovation for U.S. Stablecoins. It creates a federal regulatory framework for payment stablecoins—digital coins pegged to fiat currency—requiring:

Licensed issuers (bank subsidiaries, federal/state‑qualified nonbanks)

100% reserve backing in U.S. dollars or equivalent liquid assets

Monthly public disclosures and audits

Priority redemption rights for holders in bankruptcy

✅ Senate Approval

Passed Senate on June 17, 2025, by a 68–30 vote (congress.gov).

Bipartisan support, with key Democrats (e.g. Booker, Schiff) backing it

⚙️ Key Provisions Highlights

Full reserves: Stablecoins must be backed 1:1 by cash, Treasuries, or similar assets

AML/AML compliance: Must follow Bank Secrecy Act, including recordkeeping and sanctions screening

Redemption priority: Token holders get first claim in issuer bankruptcy

No big‑tech interest coins: Restricts interest-bearing stablecoins and issuance by large non‑financial firms

Foreign access allowed: Foreign issuers can operate in the U.S. under reciprocal conditions

🎙️ Support & Criticism

Supporters argue it:

Brings clarity and legitimacy to the stablecoin market

Boosts consumer protection and market trust

Helps keep digital finance innovation within U.S. jurisdiction

Critics, led by Sen. Elizabeth Warren, say it:

Is too industry-friendly, offering weak consumer and stability safeguards

Opens doors for conflicts of interest (e.g. Trump’s USD1 coin)

Raises financial stability and illicit finance risks

📌 What’s Next

Now moves to the House of Representatives for debate and vote

If passed, it goes to the President’s desk and could become law later in 2025.