The U.S. Senate Passes the GENIUS Act to Regulate Stablecoins
AI Summary
Binance Blog published a new article highlighting the recent approval by the U.S. Senate of the GENIUS Act, a groundbreaking legislative effort to create a national framework for regulating backed stablecoins. This historic law was passed with a vote of 68-30, aimed at establishing stringent guidelines on reserves, transparency, and consumer protection, while banning algorithmic stablecoins and those with yields. If the House of Representatives approves the bill and it is signed into law, it could significantly impact the adoption of stablecoins across the cryptocurrency, fintech, and traditional finance sectors, affecting American consumers and potentially setting a global precedent.
The GENIUS Act, co-sponsored by a bipartisan group of senators including Tim Scott, Bill Hagerty, Kirsten Gillibrand, and Cynthia Lummis, represents a shift from enforcement through litigation to constructive policymaking. This move aligns with the current administration's focus on promoting financial innovation in the United States. The bill provides a specific framework for "backed stablecoins," which are digital tokens tied to stable assets like the U.S. dollar, designed for transactions #FOMCMeeting $BTC
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