US Senate approves landmark GENIUS Act for stablecoin regulation

The Senate approved the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act successful a 51-23 ballot connected June 17, sending the measurement to the House for consideration.

The ballot followed a 68-30 cloture determination connected June 11 that chopped disconnected statement and started the mandatory 30-hour countdown to the last rotation call.

Senator Bill Hagerty (R-Tenn.), the bill’s pb sponsor, called the ballot “a large triumph for the United States.”

In a statement shared connected societal media, helium said GENIUS “establishes the archetypal ever pro-growth regulatory model for outgo stablecoins.”

He further added:

“[The bill] volition cement US-dollar dominance, support customers, summation request for US Treasuries and guarantee that innovation successful the integer plus abstraction is successful the hands of the United States, not our adversaries.”

Hagerty noted that pegging stablecoins one-for-one to currency oregon short-term Treasuries combines the dollar’s stableness with blockchain speed, enabling near-instant colony for businesses and individuals and “ushering successful a caller procreation successful outgo processing.”

He besides projected that stablecoin issuers could go the world’s largest holders of Treasuries by 2030, bolstering fiscal resilience.

The GENIUS Act requires each outgo stablecoin to clasp reserves adjacent to the fig of tokens successful circulation, constricted to short-dated US Treasuries oregon insured deposits, and bars issuers from paying yield. 

Reserves indispensable beryllium successful accounts segregated from operating capital, and issuers indispensable support Bank Secrecy Act compliance programs, execute lawsuit owed diligence checks, and study suspicious activity. 

Entities with much than $10 cardinal successful liabilities would request a national charter; smaller issuers could run nether authorities regimes that conscionable national standards, taxable to associated examinations by national regulators. 

Additionally, the Treasury Department volition beryllium mandated to people quarterly audit templates, and the Commodity Futures Trading Commission (CFTC) volition beryllium fixed constricted enforcement powers successful the spot market.

Treasury Secretary Scott Bessent has argued that the reserve mandate could gully backstage request toward Treasury bills, trim borrowing costs, and present millions of users worldwide to dollar-denominated integer plus rails.

With Senate transition secured, the GENIUS Act present awaits scheduling successful the House.

The station US Senate approves landmark GENIUS Act for stablecoin regulation appeared archetypal connected CryptoSlate.