Senate Approves GENIUS Act, Paving the Way for Federal Stablecoin Regulations

On June 17th, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was passed by the US Senate in a 68 to 30 vote, marking the first federal regulations for dollar-pegged stablecoins in the US. The crypto industry has praised the bill, which still needs to pass the Republican-led House to become law.

Introduced by Senator Bill Hagerty, the GENIUS Act is intended to regulate the $260 billion stablecoin market and to maintain the dominance of the USD by moving payments onto the blockchain. The act mandates that stablecoins be fully backed and issuers must undergo regular security audits and approval from federal or state regulators. It also limits the use of algorithmic stablecoins and those without full backing. Despite some opposition from Democrats, the bill has made significant progress.