Terryl Diki
May 5, 2025 20:42
The Senate’s genius law aims to ensure consumer protection and financial stability by regulating stable issuance. The bill is faced with democratic opposition to the prevention of money laundering and national security issues.
The US Senate introduced guidance and establishment of the US Stablecoins Act in 2025, known as a genius law to establish a comprehensive regulatory framework for issuing Stablecoin. According to galaxy.com, Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, Cynthia Lummis and Senator Angela Alsobrooks are co -sponsored by Galaxy.com, according to Galaxy.com We propose a strong regulatory system to strengthen.
Main provisions of genius law
Genius Act is trying to regulate the publisher of the Stablecoin operated in the United States. The publisher is generally registered as a money service business with the Financial Service’s Finen or a specific weekly license. However, this law introduces the CUNTROLER OF CURRENCY (OCC) and the federal supervision of the office of the state regulatory authorities to ensure a national regulatory framework that deals with consumer safety, AML/CFT compliance and reservation requirements.
This bill must maintain a 1: 1 preliminary ratio supported by Stablecoin with US currency, insurance deposits and short -term finance. It also prohibits a stable stable stabil lecomin who floats the yield and imposes a three -year grace period for digital asset service providers to convert to new regulations.
Democratic opposition and criticism
Despite the 18-6 votes, the Genius Act is faced with opposition from nine Democrats. They claim strong provisions for preventing money laundering, foreign publishers, national security and responsibilities. Opponented Senators threatened to oppose the passages of the bill unless this problem was solved.
According to these concerns, this bill has been updated to include enhanced languages of national security and financial system safety. However, the Democratic Party continues to defend further improvement of legislation before bringing it to the Senate.
The meaning of genius law
The Genius Act is designed to protect consumers by protecting the integrity of the financial system by allowing the publisher to receive similar regulations to the bank. It also aims to promote innovation in the digital asset space by providing a clear regulatory path for issuing Stablecoin.
By anchored with the US Treasury Department, this law supports the issue of US debt and strengthens the dollar’s dominance in global finance. As STABLECOINS gains regulatory clarity, it is expected to strengthen its competitive advantage in the US economy by playing a pivotal role in inter -border transactions and digital finance.
The genius law shows an important stage for stable regulations, but the future depends on solving both parties’ problems and achieving agreements on its provisions. The results will determine the role of Stablecoins’ regulatory environment and a wide range of financial ecosystems.
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