The U.S. Senate is preparing for a decisive vote on the Generating Responsible Innovation for Trusted Yield and Sanctions Infrastructure (GENIUS) Act, legislation proposing comprehensive federal oversight for dollar-backed stablecoins.
The bill mandates that all stablecoins must maintain one-to-one backing by U.S. dollars or equivalent liquid reserves, eliminating risks of under-collateralization. Oversight provisions include compulsory annual audits for issuers exceeding $50 billion in valuation to ensure transparency and investor protection.
Senate Majority Leader John Thune initiated a pivotal procedural cloture vote requiring 60 votes for approval, signaling strong bipartisan momentum following a previous 66-32 favorable vote. Industry leaders welcome the legislation as a landmark effort to balance cryptocurrency innovation with robust consumer safeguards.
If passed, the GENIUS Act would set a precedent for digital asset regulation in the United States and could influence global stablecoin governance frameworks.