A naukri.com initiative
Pymnts
3w
8
Image Credit: Pymnts
U.S. Senate Passes GENIUS Act Stablecoin Regulations in Crypto First
- The U.S. Senate passed the GENIUS Act, a stablecoin regulation bill, in a 68-30 vote, moving one step closer to President Trump's approval.
- Senate Banking Committee Chairman and House Committee on Financial Services Chairman express anticipation for regulatory clarity in the digital asset ecosystem.
- The bill must pass the House before reaching Trump's desk, with implications for the global adoption of dollar-backed digital currencies and blockchain technology.
- Financial institutions like JPMorgan, Bank of America, Wells Fargo, Citigroup, and Circle are increasingly interested in stablecoins as the industry gains legitimacy.
- Major retailers like Walmart and Amazon are exploring embedded payments with stablecoins, while global banks experiment with cross-border liquidity management.
- The GENIUS Act's passage aims to reduce legal risks, foster industry confidence, and promote stablecoin adoption and innovation in the financial services sector.
- Concerns include potential risks to traditional banks from liquidity flight into stablecoins and issues related to monetary sovereignty and surveillance.
- Regulations require stablecoins to be backed 1:1 by U.S. Treasuries and subject to audits/AML, but there are ongoing discussions about further safeguards.
- Lawmakers are considering merging the GENIUS Act with broader legislation like the CLARITY Act, which could impact implementation timelines.
- If passed, the GENIUS Act will set a precedent for how digital currencies are managed, signaling a new era in financial innovation governance.
Read Full Article
Like
For uninterrupted reading, download the app