GENIUS Act Passes in Senate  

The GENIUS Act passed the Senate with 68 votes in favor and 30 against. This brings the GENIUS Act one step closer to defining the legal framework for stablecoins. This strong support means the bill could pass the U.S. Senate as early as next week. If leaders speed up the process, an even earlier vote is possible. State-level regulations aimed at increasing transparency, especially for smaller stablecoin issuers, are also on the way.  

What Does the GENIUS Act Aim For?  

The GENIUS Act primarily aims to integrate stablecoins into the U.S. financial system. It expects a significant capital inflow into the crypto market. The bill creates the first federal framework for stablecoins, currently an unregulated payment product. This framework seeks to protect consumers and ensure the stability of the financial system. Additionally, the bill allows banks and non-bank entities to issue stablecoins. This could encourage large companies like Meta or Google to enter the market, potentially increasing liquidity.  

Strict Rules for Stablecoins Are Coming: Banks Are Involved Too!  

The GENIUS Act also considers the concerns of the banking sector. To prevent banks from competing with deposits, they might prohibit interest-bearing stablecoins. In fact, major banks like Bank of America are planning to launch their own stablecoins. This shows how intense the competition is.  

The new bill mandates that stablecoin issuers always maintain a 1:1 dollar reserve. They will typically hold these reserves in secure assets like U.S. Treasury securities. Also, mandatory audits are on the way for issuers with a market capitalization over $50 billion.  

After passing the Senate, the bill will go to the U.S. House of Representatives. Ultimately, U.S. President Donald Trump will sign the bill. President Trump and Treasury Secretary Scott Bessent support the bill. This strengthens the possibility of the bill soon becoming law.  

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The post Stablecoin Bill GENIUS Act Advances in US Senate!   appeared first on Coin Engineer.