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GENIUS Act Nears Final Approval For U.S. Stablecoin Regulation
In a significant move, the United States Congress has formally approved the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), paving the way for comprehensive regulation of stablecoins in the country. This landmark legislation now awaits only the President’s signature to become law.
The GENIUS Act marks a major shift in how the U.S. regulates stablecoins, introducing a structured and enforceable framework for their issuance, backing, and supervision. With widespread bipartisan support in both the House and Senate, this bill is poised to bring stability and trust to the crypto economy.
By mandating full-reserve backing and excluding algorithmic and interest-bearing models, the Act aims to protect consumers while encouraging responsible innovation. The U.S.’s proactive approach to regulating stablecoins will serve as a blueprint for other nations seeking to govern these digital assets effectively.
The GENIUS Act requires stablecoin issuers to fully back their tokens with reserves held in U.S. dollars or similar secure, liquid assets. This provision would effectively bar the use of algorithmic or insufficiently backed models. Oversight responsibilities will be shared between federal regulators, including the Office of the Comptroller of the Currency, and state financial authorities.
In a broader move towards regulating stablecoins, the House has also advanced two other crypto-related bills on the same day, further solidifying the government’s commitment to bringing order and safeguards to the rapidly evolving crypto economy.
Source: zebpay.com
