U.S. Senate Passes GENIUS Stablecoin Act Amidst Major Crypto Developments

The GENIUS Act establishes a regulatory framework for stablecoins, enhancing consumer protection and ensuring transparency in the digital asset market.

Summary

The U.S. Senate passed the GENIUS Act with a 68 to 30 vote, creating a regulatory framework for dollar-pegged stablecoins. The act mandates that stablecoins be backed by liquid assets and requires issuers to disclose reserves monthly. The bill now moves to the House for further consideration, reflecting ongoing legislative efforts to regulate digital assets. Critics express concerns that the bill favors industry interests over consumer protection.

Terms & Concepts
  • GENIUS Act: Legislation aimed at regulating stablecoins, ensuring they are backed by liquid assets and mandating disclosures.
  • Stablecoins: Cryptocurrency tokens pegged to stable assets, typically fiat currencies, to minimize price volatility.
  • Bipartisan Support: Support from members of both major political parties, indicating a collaborative legislative effort.