17.06.2025 22:20
The US Senate overwhelmingly approved the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a landmark piece of legislation designed to regulate the burgeoning stablecoin market. A decisive 51-23 vote on June 17th cleared the bill's path to the House of Representatives for further consideration. This followed a prior cloture vote on June 11th, silencing opposition debate and triggering the final vote.
Senator Bill Hagerty (R-Tenn.), the act's primary sponsor, hailed the Senate's approval as a significant victory for the United States. In a statement disseminated via social media, he lauded the GENIUS Act for creating the nation's first growth-oriented regulatory framework for payment stablecoins. He further emphasized the bill's potential to solidify the US dollar's global dominance, enhance consumer protection, drive demand for US Treasuries, and ensure American leadership in digital asset innovation, effectively preventing foreign adversaries from gaining a foothold.
Hagerty's vision extends beyond immediate impacts; he anticipates stablecoin issuers becoming the world's largest holders of US Treasuries by 2030, a development he believes would significantly strengthen the nation's fiscal stability. The senator highlighted the synergistic nature of stablecoins, combining the dollar's inherent stability with the speed and efficiency of blockchain technology. This combination, he argued, will revolutionize payment processing, offering near-instant settlements for both businesses and individuals.
The GENIUS Act itself mandates a one-to-one reserve backing for every payment stablecoin, restricting these reserves to short-term US Treasuries or insured deposits. Yield payments on these reserves are strictly prohibited. Furthermore, the act mandates the segregation of reserves from operating capital, imposes stringent Bank Secrecy Act compliance, necessitates robust customer due diligence, and mandates the reporting of suspicious activities. A tiered approach to licensing is implemented, requiring firms with over $10 billion in liabilities to secure a federal charter, while smaller entities can operate under state regulations conforming to federal standards, subject to joint oversight by federal regulators. Finally, the act empowers the Treasury Department to release regular audit templates and grants the Commodity Futures Trading Commission (CFTC) limited enforcement authority within the spot market. The legislation is the result of careful consideration and collaboration, reflecting a proactive and comprehensive approach to regulating the future of digital finance, sourced from internet resources.
