Historic Move: Senate Passes GENIUS Act to Regulate Stablecoins

The U.S. Senate passed the GENIUS Act to regulate stablecoins, marking a pivotal moment for the cryptocurrency industry. The bipartisan bill creates a framework requiring stablecoin issuers to back tokens with liquid assets and disclose reserves. It awaits approval from the House and President Trump for enactment.

In a significant development for the cryptocurrency sector, the U.S. Senate has approved the GENIUS Act, establishing a regulatory framework for stablecoins. These digital tokens, pegged to the U.S. dollar, are pivotal in cryptocurrency trading, offering traders a secure medium to move funds between different tokens without volatility concerns.

The bill, which passed with a 68-30 vote, is a first-of-its-kind legislation aimed at mandating stablecoin issuers to back their tokens with liquid assets such as U.S. dollars and short-term Treasury bills. This legislative move is seen as crucial for facilitating the widespread adoption of stablecoins, enabling instant payments.

Despite the Senate's nod, the legislation now faces scrutiny in the House of Representatives. There, amendments are anticipated, especially concerning the roles of tech giants and anti-money laundering precautions. The outcome could set a precedent influencing regulations globally as the digital economy accelerates.

(With inputs from agencies.)