The US Senate took a historical decision on Tuesday evening: with a large majority of 68 against 30, the senators agreed to the Genius Act. It is the first extensive law in the US that imposes rules on Stablecoins, digital coins linked to the dollar.
The law must put an end to the unregulated issue of these coins. But now it is up to the House of Representatives: does approval also follow?
Genius Act set strict requirements for Stablecoins
The guiding and establishing National Innovation for US Stablecoins of 2025 – Genius Act – for short – compulsory publishers of Stablecoins to complete their tokens with cash or short -term government bonds. There are also heavy demands in the field of transparency, capital buffers and anti -money laundering measures.
It is remarkable that the law has now come through the Senate despite years of resistance, thanks in part to the support of several democratic senators. According to Republican Senator Bill Hagerty, who submitted the proposal, the law is essential to create trust in this form of digital dollars. “The value of Stablecoins will be linked to the dollar and one-on-one. This gives certainty and confidence for wider adoption of this technology,” he said just before the mood.
Not everyone shares that optimism. Senator Elizabeth Warren voted against and warned that the Foreign Parties Act, such as Tether, gives too much room. She also criticized the possibility that tech giants can disrupt the market with its own stablecoins. Extra sensitive is the fact that President Donald Trump himself is involved in crypto projects.
A historic milestone
The Genius Act is seen as a milestone within the industry. Ji Kim from the Crypto Council for Innovation spoke of “a historic step forward”. Amanda Tuminelli of the Defi Education Fund called it “a victory for the US and for innovation”.
Yet the process has not yet been completed. The bill is now at the House of Representatives. He can approve or change the proposal. In the latter case, the Senate must vote again. Important: The Genius ACT is in line with a broader bill in the House, the Digital Asset Market Clarity Act, which must record the legal framework for the entire crypto sector.
90 percent linked to dollars
A report from TRM Labs shows that Stablecoins are now good for more than 60 percent of all crypto transactions. More than 90 percent of them are linked to the dollar. Nevertheless, experts point out that the speed and scale of these tokens also entail risks, such as use with ransomware and fraud.
What does the House of Representatives do with this law?
In the coming weeks it will become clear whether the House of Representatives also support this law. It would be a historic moment for the United States:.
Source: https://newsbit.nl/crypto-industrie-boekt-succes-amerikaanse-senaat-stemt-voor-genius-act/
