The Senate just voted to pass the GENIUS Act, ensuring this bill will become law. It will have massive implications for US crypto regulation, creating a new framework for stablecoins.
Several Democrats voiced their opposition to the Act, but it passed with strong bipartisan support.
GENIUS Act To Take Effect
Stablecoin regulation is a hot topic in the crypto industry right now, and the GENIUS Act represents a major breakthrough for innovation.
After months of debate and failed votes, a series of new amendments and bipartisan support have pushed it over the finish line. Now, all it’ll need is President Trump’s signature to take effect.
Several major institutions have already anticipated this move and are preparing accordingly. Both JPMorgan and the Bank of America have announced plans to launch their own stablecoin soon.
The GENIUS Act will impose new restrictions on stablecoin issuers, mandating that they purchase huge sums of US Treasury bonds.
This requirement pushed Tether to buy more Treasuries than most states, potentially giving stablecoins new influence in world finance. President Trump has big plans for this industry, assigning them a role in dollar dominance.
A few Democratic Senators strenuously opposed the GENIUS Act, viewing it as an avenue for Trump’s crypto corruption. Additionally, critics have pointed out that it may complicate bankruptcy proceedings.
According to Section 9 of the bill, stablecoin holders get priority over other creditors in the event of issuer insolvency. This could create serious problems if banks or major corporations begin issuing stablecoins.
In the main, however, the Party supported the bill. A few Dems, such Senator Kirsten Gillibrand, spoke in favor of the crypto industry while denouncing the President’s investment, which other lawmakers may adopt.
In any event, a new chapter of US crypto regulation has begun. The industry marshaled an immense effort to pass the GENIUS Act, and its struggle paid off. Hopefully, this bipartisan coalition can deliver future victories, too.
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