🏛️ What is the GENIUS Act?
GENIUS is an acronym for Guiding and Establishing National Innovation for U.S. Stablecoins Act, which passed the U.S. Senate with a majority of 68–30.
It mandates:
1:1 coverage for each stablecoin with highly liquid assets (dollars, short-term Treasury bonds).
Transparency requirements: Monthly reports on reserves, and annual audits for issuers exceeding $50 billion.
Consumer protection: Ensures users have priority in asset recovery in the event of the issuer's bankruptcy.
Two regulatory pathways: For issuers under $10 billion under state supervision, and for larger issuers under the supervision of the Federal Reserve or the Comptroller's office.
Prohibition of algorithmically-backed stablecoins, and compliance with anti-money laundering (AML) and KYC regulations.
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🏦 Why is this important?
It is the first comprehensive federal regulatory framework for stablecoins in the United States.
It led to strong increases in the stock prices of companies like Circle (USDC) and Coinbase, reaching up to +17–27% on the day of passing.
It is expected to contribute to the growth of the stablecoin market to $1.6–2 trillion in the future.
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🧩 What does the hashtag #GENIUSActPass mean?
It means that the bill has been "passed" in the Senate. It serves as an endorsement or declaration to celebrate this legislative achievement.
Translation in Arabic:
"Passing the GENIUS Act"
Or in hashtag form: #تمرير_قانون_GENIUS #
