Senate to Vote on GENIUS Act for U.S. Stablecoin Regulation
The Senate's GENIUS Act, crucial for U.S. stablecoin regulation, is set for a vote this week and may become law within months, according to Bernstein's research report.
- Stablecoins are cryptocurrencies pegged to assets like the U.S. dollar or gold.
- They serve as payment infrastructure and facilitate international money transfers.
- Post-passage, stablecoins are expected to transition from crypto payment rails to internet payment rails.
- The act aims to foster stablecoin innovation in the U.S., providing advantages to regulated issuers.
- It mandates federal oversight for stablecoins with a market cap exceeding $10 billion, allowing state regulation aligning with federal standards.
- The bill classifies stablecoins as digital cash, promoting broader use in payments beyond digital asset settlements.
- It restricts non-financial public companies from issuing stablecoins, influencing companies like Amazon and Walmart to collaborate with regulated issuers.