Bill supporting Genetic Information Nondiscrimination Act advances, heads towards senate floor vote
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The US Senate's GENIUS Act, a major stablecoin bill, is steps away from reshaping crypto regulation after a Wednesday vote. With a 68-30 cloture vote, the Senate paved the way for a final vote set for next Monday.
If passed, this legislation could create the first national regulatory framework for stablecoins, bringing clarity to an otherwise uncharted territory in the US.
The GENIUS Act, an acronym for Guiding and Establishing National Innovation for US Stablecoins, proposes a series of checkpoints for stablecoin issuers. These include maintaining a 100% reserve, annual audits if market cap surpasses $50 billion, and adherence to rules for foreign issuers.
By setting these benchmarks, the GENIUS Act could serve as a blueprint for future stablecoin regulation in the US financial sector. Senate Majority Leader John Thune advocated for the bill, supporting President Donald Trump's viewpoints on digital assets. "We're aiming to bring cryptocurrency into the mainstream, and the GENIUS Act will help us achieve that," he stated.
However, not all lawmakers share the same sentiment. Senator Elizabeth Warren raised concerns, criticizing the bill for lacking bipartisan amendments and for potential political risks associated with Trump's crypto dealings. "Passing the GENIUS Act will not only endorse this corruption, but actively promote its expansion," she warned, referencing Trump's ties to a cryptocurrency platform backed by his family.
Meanwhile, industry leaders are painting a positive picture. Yuval Rooz, CEO of blockchain firm Digital Asset, calls the bill a "pivotal shift" in crypto regulation. "The passage of the GENIUS Act marks a long-awaited shift from enforcement to clarity," he said. "It provides banks with a clear framework to engage confidently with stablecoins."
As the Senate gears up for the final vote, the GENIUS Act's fate hangs in the balance. Its passage could shape the future of US crypto policy and dictate how stablecoins are used in both traditional and decentralized finance.
In a separate development, there's talk about Solana breaking past the $176 mark following a 17% surge.
Enrichment Data:The GENIUS Act could have far-reaching implications for both the digital asset industry and the US financial system. Here's how:
- Integration into the Traditional Banking System: The clear regulations proposed by the Act could ease the integration of stablecoins into the mainstream financial system, boosting their adoption and use in transactions.
- Financial Stability: Emphasis on reserve requirements and regulatory oversight in the Act could bolster financial stability by reducing the risk of stablecoin failures.
- Innovation and Competition: The Act might encourage innovation and competition in the digital asset space, offering more secure and efficient payment options for consumers and businesses.
- Market Confidence: By providing a clear legal framework, the Act could bolster market confidence in stablecoins, attracting institutional investors and mainstream adoption.
- With the GENIUS Act potentially reshaping crypto regulation, it could pave the way forintegration of stablecoins into the traditional banking system, boosting their adoption and use in transactions.
- By setting benchmarks like maintaining a 100% reserve and adherence to rules for foreign issuers, the GENIUS Act aims to bolster financial stability, reducing the risk of stablecoin failures.
- The passage of the GENIUS Act might encourage innovation and competition in the digital asset space, offering more secure and efficient payment options for consumers and businesses.
- The clear regulations proposed by the GENIUS Act could bolster market confidence in stablecoins, attracting institutional investors and mainstream adoption, even as Solana breaks past the $176 mark following a 17% surge.
