Senate Passes GENIUS Act, Marks Historic Moment for Cryptocurrency

The Senate passes the GENIUS Act, the first federal stablecoin rules, to support the cryptocurrency industry.

To mark a historic step that could reshape the future of digital banking and introduce the first major regulation for the cryptocurrency world, the GENIUS stablecoin bill was recently approved by the US Senate. The act was approved by the Senate on Tuesday, with a vote of 68 to 30.

The first federal law regulating stablecoins linked to the U.S. dollar is the GENIUS Act. It allows private companies to create digital currencies, but only if the government approves. Stablecoins are a type of cryptocurrency connected to real assets, like the U.S. dollar. In fact, 99% of stablecoins are linked to the price of the dollar. The GENIUS Act, also known as Guiding and Establishing National Innovation for U.S. Stablecoins, sets clear rules for the stablecoin sector. These regulations include anti-money laundering compliance, full reserves, backing, and conducting monthly audits. The bill also allows a wider range of issuers to issue stablecoins. Fintech companies, banks, and even large retailers fall under this category. They can either add stablecoins to their existing payment systems or introduce their own. In a statement, Sen. Kirsten Gillibrand, D-N.Y., one of the bill's supporters, said that the act is meant to safeguard consumers, encourage safe innovation, and maintain the dominance of the U.S. dollar.

The GENIUS Act's passing is a significant event for the cryptocurrency sector. However, Sen. Jeff Merkley, a Democrat from Oregon, strongly criticized the bill's passing, and he accused Republicans of blindly supporting “Trump’s crypto corruption.” Furthermore, he claimed that the bill would allow the president to use the government for personal financial benefit.