Source: Dall-E<\/p>\n
By Felibertarian Editorial Team<\/strong> Say hello to S.1582<\/strong>, formally known as the GENIUS Act<\/strong>\u200a\u2014\u200ashort for Guiding and Establishing National Innovation for U.S. Stablecoins<\/em>. Introduced by Sen. Bill Hagerty (R-TN)<\/strong> on Feb 4, 2025<\/strong>, this bill just cleared the Senate on June 17<\/strong> with a decisive bipartisan vote of\u00a068\u201330<\/strong>.<\/p>\n This landmark bill establishes the first comprehensive federal framework<\/strong> for stablecoins in the United States’ history. For the first time, payment stablecoins<\/em>\u200a\u2014\u200adigital assets tied to a fixed value, such as the U.S. dollar\u200a\u2014\u200awill be subject to regulation. Think digital cash, but with national guardrails.<\/p>\n The GENIUS Act brings long-overdue structure to a fast-growing corner of the crypto industry. Here are the key elements:<\/p>\n U.S. dollars or liquid assets must fully back stablecoins<\/strong>. Issuers managing more than $50 billion must also undergo independent annual\u00a0audits<\/strong>.<\/p>\n All issuers are required to publish monthly breakdowns of their reserves<\/strong>, providing users with a clear view into the stability of these\u00a0coins.<\/p>\n The act enforces Bank Secrecy Act<\/strong> compliance, requires robust AML checks<\/strong>, and ensures that consumers are prioritized in the event of bankruptcy.<\/p>\n A dual-licensing model<\/strong> allows issuers to choose between federal or state regulation, but with certain limitations. Only those under $10 billion in issuance can operate under looser state\u00a0rules.<\/p>\n Non-financial corporations (like Meta or Amazon) face strict limits<\/strong> on issuing stablecoins unless they meet robust security and risk requirements<\/strong>.<\/p>\n Members of Congress can’t profit from launching stablecoin issuers. The President is notably exempt<\/strong>, fueling political heat.<\/p>\n Feb 4, 2025<\/strong>: Introduced by Sen.\u00a0HagertyMar 13<\/strong>: Passes Senate Banking Committee (18\u20136)May 20<\/strong>: Cloture vote clears\u00a0(66\u201332)Jun 17<\/strong>: Full Senate passes the bill\u00a0(68\u201330)Next<\/strong>: Heads to House for reconciliation with its STABLE\u00a0Act<\/strong><\/p>\n The GENIUS Act brings stability and clarity to a murky digital asset space. It’s supported by both Republicans and Democrats, with co-sponsors like Sens. Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks<\/strong>.<\/p>\n \u201cThis sets the stage for these assets to go mainstream.\u201d\u200a\u2014\u200a<\/em>Christian Catalini<\/em><\/strong>, MIT Opponents, including Sen. Elizabeth Warren<\/strong>, argue that it could loosen the grip of sanctions and invite\u00a0misuse.<\/p>\n Even more controversial? A clause exempting the President from conflict-of-interest rules, raising eyebrows as former President Trump<\/strong> holds a stake in World Liberty Financial’s USD1 stablecoin<\/strong>.<\/p>\n With global stablecoin usage ballooning, U.S. lawmakers are playing catch-up. The GENIUS Act is a serious bid to make America competitive<\/strong> while also protecting consumers and the financial system.<\/p>\n Treasury Secretary Scott Bessent<\/strong> estimates that the market could reach $2\u2013$3 trillion<\/strong> under this new law. Companies like Circle, Visa, Amazon, and Walmart<\/strong> are already prepping to\u00a0scale.<\/p>\n The GENIUS Act<\/strong> is the first federal framework for stablecoins<\/strong>, ensuring full reserve backing, public disclosures, anti-money laundering (AML) compliance, and precise licensing requirements. It’s a big win for clarity and innovation, but expect more fireworks as it merges with the House\u00a0version.<\/p>\n Stay tuned<\/strong>\u200a\u2014\u200adigital dollars might just become as common as your debit\u00a0card.<\/p>\n \ud83c\uddfa\ud83c\uddf8 The GENIUS Act: A Watershed Moment for U.S. Stablecoin Regulation<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" Source: Dall-E By Felibertarian Editorial Team \ud83d\udcc5 June 18,\u00a02025 What Is the GENIUS\u00a0Act? Say hello to S.1582, formally known as the GENIUS Act\u200a\u2014\u200ashort for Guiding and Establishing National Innovation for U.S. Stablecoins. Introduced by Sen. Bill Hagerty (R-TN) on Feb 4, 2025, this bill just cleared the Senate on June 17 with a decisive bipartisan […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-74602","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/74602"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74602"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/74602\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\ud83d\udcc5 June 18,\u00a02025<\/em><\/p>\nWhat Is the GENIUS\u00a0Act?<\/h3>\n
What’s Inside the\u00a0Act?<\/h3>\n
1:1 Reserves & Annual\u00a0Audits<\/h3>\n
Monthly Reserve Disclosures<\/h3>\n
Consumer Protection & Anti-Money Laundering<\/h3>\n
Federal + State Oversight<\/h3>\n
Big Tech Restrictions<\/h3>\n
Conflict-of-Interest Provisions<\/h3>\n
Timeline Snapshot<\/h3>\n
The Reactions<\/h3>\n
Supporters Say\u2026<\/h3>\n
<\/em>\u201cWe\u2019re bringing clarity to a sector that\u2019s been clouded by uncertainty.\u201d\u200a\u2014\u200a<\/em>Sen. Tim\u00a0Scott<\/em><\/strong><\/p>\n\ud83d\udd34 Critics\u00a0Warn\u2026<\/h3>\n
\ud83c\udfc1 Why This\u00a0Matters<\/h3>\n
\u2705 TL;DR\u00a0Summary<\/h3>\n