U.S. Senate, Stablecoin Regulatory Act 'Genius' Passed…New Standards Presented to the Market

The Stablecoin Bill Finally Passed Both Houses (Source: CoinGape)

The United States Senate passed the stablecoin regulatory law, ‘Genius (GENIUS)’ bill, on the 18th (Korean time). Passed by an overwhelming vote of 68 in favor, 30 against, this bill is interpreted as a signal to begin the institutionalization of the stablecoin market in the United States.

The Genius Act specifies the obligation for stablecoin issuers to obtain a license and a 100% reserve requirement. In particular, companies issuing stablecoins with a market capitalization of more than $50 billion must undergo an annual regular audit, and regulations for foreign issuers are also included. In effect, it allows U.S. regulatory authorities to exert influence on global issuers.

With this passage in the Senate, the Genius Act now awaits a vote in the House and the signing procedure by President Donald Trump. Since President Trump has consistently expressed a favorable stance towards the cryptocurrency industry, the possibility of signing the bill is also considered high.

The industry views the Genius Act as becoming the benchmark for U.S. stablecoin regulation. As the previously unclear legal status becomes clarified, the adoption of stablecoins by institutional investors and traditional financial institutions is expected to accelerate.