“US Congress Approves GENIUS Act, Setting Framework for Stablecoins in the Country”
In a historic move, the US House of Representatives has passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act with an overwhelming majority, paving the way for the first major cryptocurrency law in the country. The Act, which sets out a regulatory framework for stablecoins, now only awaits President Donald Trump’s signature to become law.
The GENIUS Act has been in the works for months, receiving approval from the Senate earlier. With a final vote of 308-122 in favor, the Act has now been passed by both houses of Congress. More than 100 Democrats voted in favor of the bill, showcasing a bipartisan effort towards regulating the crypto industry.
Leading digital asset companies have welcomed the passing of the GENIUS Act, with Yuval Rooz, CEO and Co-founder of Digital Asset, stating that the US will strengthen its position as a global leader in cryptocurrencies by moving from regulation through enforcement to clear rules. This move is also expected to encourage other countries to follow suit.
Once enacted, the Act will require any firm issuing a payment stablecoin to fully back each token with cash or short-term US Treasury securities held in segregated reserves. Companies will also have to obtain a bank charter or a new federal or state “qualified” stablecoin license and publish a detailed monthly reserve report. They will also have to meet basic capital, liquidity, and anti-money laundering standards and avoid paying interest simply for holding the coin.
The passing of the GENIUS Act is a significant step towards protecting users, preventing runs, and providing a clearer legal path for the use of dollar-backed digital cash. The Act is also expected to boost the use of stablecoins in everyday transactions, with major companies like Amazon and Walmart exploring stablecoin-type payment models.
Laurent Descout, CEO and Co-founder of Neo, believes that with clearer rules now in place, stablecoin use could grow quickly, and businesses should start looking at the right partners and systems to stay ahead.
In addition to the GENIUS Act, the House also passed two more crypto-related bills: the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act. The CLARITY Act aims to set a market structure for cryptocurrencies and received a vote of 308-122 in favor. The Anti-CBDC Surveillance State Act, which would prevent the Fed from launching or testing a retail central bank digital currency, passed with a vote of 219-210.
While the CLARITY Act now moves to the Senate, the Banking Committee is expected to hold a markup later this summer. The anti-CBDC bill also awaits Senate approval.
These developments are a clear indication that US lawmakers are taking significant steps towards regulating the crypto industry. With the passing of the GENIUS Act and other crypto bills, the US is on track to become a leader in the global crypto market. Only time will tell if these efforts will result in a more secure and stable crypto ecosystem in the country.