The U. S. Senate passed the Genius Act to provide full oversight of stablecoins
According to CNN and other foreign media reports, on June 17 local time, the U.S. Senate voted 68-30 to pass the National Innovation Act to guide and establish the U.S. Stablecoin (Genius Act) . The bill aims to establish a comprehensive regulatory framework for stable money issuance.
(photo: CNN)
Under the bill, stablecoins must be fully backed by dollars or similar liquid assets. For issuers with a market capitalisation of more than $50bn, the bill requires an annual audit. It also sets out specific compliance rules for foreign entities such as Tether. Notably, the law prohibits non-financial listed companies such as Meta and Amazon from issuing stablecoins unless they meet certain risk and privacy standards.
In particular, the bill creates a“Super-priority” for holders of stablecoins, which would have priority over other creditors in the event of an issuer’s bankruptcy.
It is reported that the bill is now before the House of Representatives. The house will have to decide whether to move forward with its previously proposed STABLE bill or go straight to the Senate version. The two houses’ proposals remain divided over the division of state and federal regulatory powers and the regulation of foreign issuers, and a co-ordinated vote is expected in the coming weeks.