$WCT
The GENIUS Act is one step closer to becoming law in a development that could turn stablecoin issuers into key players in the economy of the United States. The adoption of stablecoins among banks and financial institutions in the United States could accelerate following the passage of new legislation in the Senate.
The U.S. Act to Guide and Establish National Innovation for Stablecoins, or GENIUS Act, was approved by the U.S. Senate in a 68-30 vote on Tuesday, according to Cointelegraph. The bill seeks to establish clear rules for the collateralization of stablecoins and requires compliance with anti-money laundering laws.
The Senate vote sends a "strong positive signal to institutions" that brings the bill one step closer to becoming law, according to Katalin Tischhauser, head of investment research at the digital asset bank Sygnum.
Numerous major banks and traditional financial institutions are planning stablecoin integrations for payments and settlements, Tischhauser told Cointelegraph, adding:
"Clear regulatory frameworks and compliance pathways are a necessity, just as is the legal recognition of stablecoins as settlement instruments." However, she noted that the institutional use of stablecoins may initially be limited to tokens issued on private blockchains.
