US Senate passes GENIUS stablecoin invoice, advancing it to the Home for remaining approval
Key Takeaways
- Senate passes the GENIUS stablecoin invoice with bipartisan help, marking first main crypto laws to clear the chamber.
- The invoice strikes to the Home, which can vote on the GENIUS Act or push its personal STABLE Act as a substitute.
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The US Senate has formally handed the GENIUS Act, marking probably the most important step but towards establishing federal guidelines to control stablecoins. The invoice handed in a remaining vote of 68–30 and now strikes to the Home of Representatives, the place it’s going to face a vote within the coming weeks.
The laws, formally titled the Guiding and Establishing Nationwide Innovation for US Stablecoins Act, or GENIUS, units authorized necessities for stablecoin issuers.
It mandates full backing of stablecoins by US {dollars} or equally liquid belongings, annual audits for issuers with over $50 billion in market capitalization, and compliance guidelines for overseas entities like Tether.
It additionally bars non-financial public firms equivalent to Meta and Amazon from issuing stablecoins until they meet particular danger and privateness requirements. Within the occasion of insolvency, the invoice provides stablecoin holders “super-priority” in chapter proceedings, placing them forward of different collectors.
Whereas the GENIUS Act has cleared the Senate, it should now be reconciled with the Home’s personal stablecoin invoice, the STABLE Act, which superior out of committee in Might. The 2 proposals differ on state versus federal oversight and the remedy of overseas issuers. Reconciliation can be required earlier than any invoice reaches President Trump’s desk.
Trump has repeatedly endorsed stablecoin regulation and is pushing to have a invoice signed into legislation by August. Treasury Secretary Scott Bessent lately mentioned that with the GENIUS Act in place, projections of a $3.7 trillion stablecoin market by 2028 turn out to be more and more probably.
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