The Senate accredited the Guiding and Establishing Nationwide Innovation for US Stablecoins (GENIUS) Act in a 51-23 vote on June 17, sending the measure to the Home for consideration.
The vote adopted a 68-30 cloture determination on June 11 that minimize off debate and began the obligatory 30-hour countdown to the ultimate roll name.
Senator Invoice Hagerty (R-Tenn.), the invoice’s lead sponsor, known as the vote “an enormous win for the US.”
In a press release shared on social media, he mentioned GENIUS “establishes the primary ever pro-growth regulatory framework for fee stablecoins.”
He additional added:
“[The bill] will cement US-dollar dominance, defend clients, enhance demand for US Treasuries and make sure that innovation within the digital asset area is within the arms of the US, not our adversaries.”
Hagerty famous that pegging stablecoins one-for-one to money or short-term Treasuries combines the greenback’s stability with blockchain velocity, enabling near-instant settlement for companies and people and “ushering in a brand new era in fee processing.”
He additionally projected that stablecoin issuers may develop into the world’s largest holders of Treasuries by 2030, bolstering fiscal resilience.
The GENIUS Act requires each fee stablecoin to carry reserves equal to the variety of tokens in circulation, restricted to short-dated US Treasuries or insured deposits, and bars issuers from paying yield.
Reserves should sit in accounts segregated from working capital, and issuers should keep Financial institution Secrecy Act compliance applications, carry out buyer due diligence checks, and report suspicious exercise.
Entities with greater than $10 billion in liabilities would want a federal constitution; smaller issuers may function underneath state regimes that meet federal requirements, topic to joint examinations by federal regulators.
Moreover, the Treasury Division might be mandated to publish quarterly audit templates, and the Commodity Futures Buying and selling Fee (CFTC) might be given restricted enforcement powers within the spot market.
Treasury Secretary Scott Bessent has argued that the reserve mandate may draw personal demand towards Treasury payments, scale back borrowing prices, and introduce hundreds of thousands of customers worldwide to dollar-denominated digital asset rails.
With Senate passage secured, the GENIUS Act now awaits scheduling within the Home.
