US Senate Approves Debate on GENIUS Bill to Regulate Stablecoins

• US Senate debates federal stablecoin bill
• GENIUS Act proposes strict rules for stablecoin issuers
• Algorithmic stablecoins could be banned under new legislation

The United States Senate approved by a vote of 66 to 32 the advancement of the bill lei GENIUS (Guiding and Establishing National Innovation for US Stablecoins Act), which establishes specific regulatory guidelines for the stablecoin sector. The proposal, introduced by Senator Bill Hagerty, from the Tennessee Republican Party, will still undergo amendments before the final vote.

Aiming to create a standardized federal framework, the text requires stablecoin issuers to maintain fully collateralized reserves, publish monthly reports on their reserves, and be audited annually. The requirement applies to projects with capitalization exceeding US$50 billion.

Another key point of the bill is the limitation of algorithmic stablecoins, which would be banned under the new rules. Large technology companies would also be barred from issuing such assets unless they meet strict financial security and consumer privacy requirements.

Initially blocked by Democrats, who pointed out flaws in consumer protection and possible conflicts of interest related to former President Donald Trump, the project returned to the agenda after changes in the position of some senators.

During the debate, critics of the text indicated the need for adjustments. “The bill, as it currently stands, has numerous issues that need to be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and holding those who fail to meet the requirements of the law accountable.”

If approved without vetoes, the GENIUS Act could become the first federal regulatory framework specifically for stablecoins in the United States. The market for these digital assets is currently estimated to be worth around $250 billion, cementing their role in the infrastructure of the cryptocurrency industry.