Key Points of the GENIUS Act
The GENIUS Act, which stands for “Guiding and Establishing National Innovation for US Stablecoins”, is a bill aimed at regulating the stablecoin market in the United States. Stablecoins are digital assets pegged to a stable value such as the US dollar. The GENIUS Act has already passed a significant hurdle in the US Senate, where it was approved on May 21, 2025, with a bipartisan majority of 66 to 32 votes. Another vote in the US Senate is scheduled for June 17, 2025.
Full Coverage
Stablecoin issuers must fully back their digital assets with liquid and secure assets like US Treasury bonds.
Regular Safety Audits
Regular safety audits and assessments are required to ensure the stability and security of stablecoins.
Anti-Money Laundering Regulations
Issuers must comply with strict anti-money laundering regulations to prevent illegal activities.
Prioritized Repayment
In the event of insolvency, issuers must prioritize repayment to investors.
Ban for Technology Companies
Large tech companies like Meta and Google are prohibited from issuing their own stablecoins to prevent excessive market concentration.
Impacts on the Cryptocurrency Market
- Stability and Trust: By introducing strict regulations, trust in stablecoins could be strengthened, leading to greater acceptance and stability in the market.
- Market Access: The GENIUS Act may make market access more challenging for new issuers, as they must meet strict requirements, potentially leading to a concentration of established players.
- Economic Impacts: Backing stablecoins with US Treasury bonds could lead to increased demand for these bonds, which could have positive effects on the US economy.
Challenges and Controversies
The GENIUS Act has also faced opposition due to political tensions and concerns regarding President Donald Trump’s crypto connections. Some Democratic senators withdrew their support for the bill before changing their minds and supporting it.
Overall, the GENIUS Act aims to stabilize and regulate the stablecoin market, which could have both positive and negative effects on the cryptocurrency market. The final vote in the US Senate on June 17, 2025, will be crucial for the future of stablecoin regulation in the USA.