Terryl Diki
May 21, 2025 22:26
The US Senate has developed genius law and aims to improve comprehensive regulatory frameworks, consumer protection and national security for Staybletko.
The US Senate has made significant progress in formalizing Stablecoins’ regulatory framework by developing genius law, known as a national innovation for the US STABLECOINS ACT. According to the chain analysis, this groundbreaking law, which successfully overcomes the Filibuster with a 66-32 vote, wants to provide a comprehensive federal framework for the regulation of Stablecoin.
Main provisions of genius law
The two-party genius law, co-sponsored by Senate KIRSTEN GILLIBRAND (D-NY) and Bill Hagerty (R-TN), aims to provide deregulation to the rapidly growing stable industry. This bill presents standards for reserves, audits and disclosure, as well as compliance with law enforcement requirements. It is a US dollar or a similar liquid asset, requiring Stablecoin’s overall preliminary support, and requires a monthly public preliminary composition disclosure. It also requires an annual financial audit for the publisher whose market cap exceeds $ 50 billion.
Implications for consumer protection and national security
Genius Act is designed to be used for consumer protection and national security measures. This must comply with bank confidential laws including anti -money laundering (AML) and sanctions, trading monitoring and enhanced due diligence. This law also introduces the ability to implement technology to prove the ability to freeze or burn tokens. The bill also emphasizes the adjustment of sanctions related to the Minister of Finance in blocking transactions with foreign institutions.
Global context and influence
The development of genius law occurs in the global promotion of stablecoin regulations, along with similar frameworks of jurisdictions such as Crypto Set Regulation (MICA) and Singapore and Japan. This regulatory movement emphasizes the increase in the importance of STABLECOIN in the global financial system, and the United States leads a significant portion of the inflow of Stablecoin worldwide. This law is expected to improve the US competitive advantage in blockchain innovation and establish global standards for regulation of stablecoin.
Next step
As the genius law heads to the Senate’s vote, it represents a pivotal moment of the US Starble Lecoin law. This development can open a way to strengthen US leadership in the field of digital asset innovation by adopting STABLECOINS in a global financial system, promoting payment and digital consensus.
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