17.06.2025 21:38
The US Senate has given its approval to the GENIUS Act, a landmark bill aiming to regulate stablecoins, demonstrating bipartisan support for the crucial legislation. This represents a significant step towards establishing a federal framework for this rapidly growing sector of the digital economy.
Now heading to the House of Representatives, the bill’s future remains uncertain. While a vote on the GENIUS Act itself is possible, the House could instead opt to prioritize its own competing legislation, the STABLE Act, passed earlier this year. These two bills, although sharing common goals, contain differing approaches to key issues.
The GENIUS Act, formally known as the Guiding and Establishing National Innovation for US Stablecoins Act, imposes stringent requirements on stablecoin issuers. These include the mandate of complete backing by US dollars or equivalent liquid assets, annual audits for larger issuers exceeding $50 billion in market capitalization, and robust compliance protocols for international entities. Furthermore, it explicitly prevents non-financial public companies from issuing stablecoins unless stringent risk and privacy benchmarks are met.
A notable feature of the GENIUS Act is the provision of "super-priority" status for stablecoin holders in bankruptcy proceedings, effectively placing them ahead of other creditors. This crucial protection is designed to safeguard consumers’ investments in the event of issuer insolvency.
The path to the President's desk, however, isn't straightforward. Reconciling the Senate's GENIUS Act with the House's STABLE Act—which diverges on areas such as federal versus state jurisdiction and the treatment of foreign issuers—will be essential. President Trump, a vocal proponent of stablecoin regulation, has expressed his desire for a bill to be signed into law by August. Treasury Secretary Scott Bessent, meanwhile, has indicated that the GENIUS Act's passage significantly increases the probability of the stablecoin market reaching a projected $3.7 trillion by 2028. The situation remains dynamic, awaiting further developments. Information obtained from internet sources.
