US Senate Expected to Approve GENIUS Act for Stablecoin Regulation
The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) is poised for approval by the US Senate on June 17, following support from 67 senators, including 18 Democrats who previously opposed it.
- The Act mandates that stablecoin issuers back their tokens 1:1 with US dollar reserves.
- It enforces stricter anti-money laundering and know-your-customer policies.
- Congress members are prohibited from profiting off stablecoins.
- Concerns remain regarding President Trump's decentralized finance project, World Liberty Financial, and its stablecoin USD1.
- Critics warn the bill may facilitate corruption and allow tech giants to issue their own stablecoins.
- The US Treasury projects the stablecoin market could reach $2 trillion by 2028.
- Post-approval, the House may introduce broader financial reforms in the final version of the bill.