In a significant development for the cryptocurrency sector, the U.S. Senate has approved the GENIUS Act, establishing a regulatory framework for stablecoins. These digital tokens, pegged to the U.S. dollar, are pivotal in cryptocurrency trading, offering traders a secure medium to move funds between different tokens without volatility concerns.
The bill, which passed with a 68-30 vote, is a first-of-its-kind legislation aimed at mandating stablecoin issuers to back their tokens with liquid assets such as U.S. dollars and short-term Treasury bills. This legislative move is seen as crucial for facilitating the widespread adoption of stablecoins, enabling instant payments.
Despite the Senate’s nod, the legislation now faces scrutiny in the House of Representatives. There, amendments are anticipated, especially concerning the roles of tech giants and anti-money laundering precautions. The outcome could set a precedent influencing regulations globally as the digital economy accelerates.
(With inputs from agencies.)
