US Senate approved Genius Act, a project to regulate the stablecoins

The initiative, which had the support of senators in both parties, marks the first firm legislative step of the Senate Towards the regulation of the stablecoins.

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• Genius Act It was officially approved by the US Senate.
• This project requires total support in USD and annual audits for large stablecoins issuing.
• Goal and Amazon They are excluded from issuing stablcoins without special conditions.
  
• The decision will now be in the hands of the House of Representatives.
• Trump supports the project and seeks to sign it before August.

The US Senate approved on Tuesday the Genius Act, An unprecedented legislative project that establishes the first solid federal framework for the regulation of Stablecoins.

According to recently published reports, The legal proposal had bipartisan support, and now leaves in the hands of the House of Representatives the next decisions regarding the bill, which must decide how to proceed with respect to Genius Act and other proposals under debate.

This is the first time that the Senate approves significant legislation related to cryptocurrencies, which also had voting support previously held before the legislative instance. Republican senator Bill Hagerty, promoter of the project, thanked his colleagues for the support before the official vote.

The process included weeks of negotiations, debates in committees and technical voting, after a failed attempt last month when the Democrats blocked the initial progress of the project. Since Donald Trump assumed the presidency earlier this year, his administration has promoted a favorable agenda to cryptocurrencies, promoting a legal environment that allows its development in US territory.

Strict demands for emitters

As such, Genius Act states that All stablecoins must be totally backed by USD or equivalent liquid assets. In addition, annual audits will be required to the issuing issues with a market capitalization exceeding USD $ 50,000 million, and specific guidelines for foreign issues are defined.

Technology companies such as Goal and Amazon They will face severe restrictions. According to the text, these may not issue Stablecoins unless they meet specific criteria in the field of financial risk and privacy of users.

Another key element of the project is the inclusion of a clause of “Superpriority” In cases of bankruptcy. This gives Stablecoins the holders the legal right to recover their money before other creditors, thus also protecting bank depositors against possible claims on reservations.

During the elaboration of the law, various pressure groups from the traditional financial sector, such as Bank of Americathey pressed to limit the participation of non -banking entities in the issuance of Stablecoins.

Inside the Congress, Several Democrats expressed concerns about provisions related to foreign issues, money laundering standards and the possible income of large technological corporations into the Stablcoins space.

Likewise, the growing link between President Trump and companies in the crypto sector has generated controversial. A clear example is the launch of the token of World Liberty Financial, a company linked to the agent’s environment, which has raised accusations of potential conflict of interest just when the bill was discussed in the Senate.

Way to the House of Representatives

Attention now focuses on the House of Representatives, that in April he had advanced his own bill on Stablecoins: the “Stablecoin Transparency and Accountability for a Better Ledger Economy Act” (Stable Act), However, that text has not yet been subjected to plenary vote.

Now that the Genius Act had the official approval by the Senate, The thesis that some are handled is that the House of Representatives choose to adopt and polish this bill, this instead of continuing the Stable Act. It could also be on the table a possible fusion of both proposals, although there the scenario would change considerably.

President Trump has expressed his desire to sign a law on Stablecoins before August. Last week, his advisors formally declared their support for the project Genius Act.

“If the Genius Act project appeared to the President in its current form, its main advisors would recommend that it sign it,” indicates an official statement of the administration.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Unspash

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