US set for crypto overhaul, Senate passes Genius Act to regulate Stablecoins

The US Senate has approved the GENIUS Act, a key bill to regulate stablecoins. It sets rules for backing, audits, and financial safety.

A Big Step Toward Crypto Control

The United States Senate has passed the GENIUS Act stablecoin regulation, a major bill to manage digital currencies and protect users through clear legal rules.

The vote passed with strong support—68 senators voted yes, while 30 voted no. The GENIUS Act stablecoin regulation is now set to shape US crypto policy.

What Is the GENIUS Act?

The GENIUS Act focuses on “payment stablecoins.” These are digital tokens that keep a stable value, often tied to the US dollar.

Under this law, only banks and trusted financial firms can issue stablecoins. They must back each coin with real money or safe assets.

Rules for Stablecoin Issuers

The bill says stablecoins must be backed 100% by cash or short-term US Treasury bonds.

Issuers must also go through regular audits to prove they hold enough funds. They must follow anti-money laundering laws as well.

Two Paths for Oversight

There will be two types of regulation. Small issuers can follow state-level rules if the state is approved.

Large issuers, or those with more than $10 billion in assets, must follow federal rules. This keeps the system safe for everyone.

No Interest or Risky Coins Allowed

The law bans stablecoins that offer interest or act like savings accounts. This helps protect users from risky products.

It also blocks public officials and their families from owning or profiting from stablecoin companies. This rule avoids conflicts of interest.

Support and Concerns

Supporters say the GENIUS Act is a smart move. It gives the industry clear rules while protecting users from fraud or crashes.

However, some lawmakers worry the bill doesn’t go far enough to guard against financial risks. They want even tighter controls.

What Happens Next?

The GENIUS Act now moves to the House of Representatives. It may be joined with a similar bill, the STABLE Act.

If the House agrees, the law could reach the President’s desk before August. That would make it official.

Why This Matters

Stablecoins are growing fast. If unregulated, they could harm the economy or users. This bill offers much-needed structure.

By backing coins with safe assets, the GENIUS Act strengthens trust in digital money and supports the US dollar’s global role.

The Future of Crypto in the US

This bill is just the start. With rules now in place, more companies may offer legal and secure stablecoin products in the US.

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