– The GENIUS Act requires that stablecoins be fully backed by assets and prohibits algorithmic stablecoins in the United States.
– The SEC and CFTC will no longer have direct oversight of stablecoins under this new legislation.
– The bill is designed to bolster the U.S. dollar’s position in the global digital market.
– Ripple and other key industry players have applauded the act as a significant step toward regulatory clarity in the crypto sector.
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A transformative moment for U.S. cryptocurrency regulation is underway as the House has approved the GENIUS Act, aiming to bring clarity to stablecoin practices. This legislation seeks to update the payment infrastructure while reinforcing the dollar’s influence in the international digital economy.
Receiving strong bipartisan support, the bill is now awaiting the President’s signature for final ratification.
The GENIUS Act for Cryptocurrency Advances
The GENIUS Act establishes stringent conditions for stablecoin issuers, enforcing full asset backing and disallowing algorithm-based coins. Representative Tom Emmer highlighted that the bill offers a clear regulatory path for innovators operating within the United States. Senator Bill Hagerty, the bill’s drafter, believes the legislation will drive international interest in U.S. Treasuries and sustain the dollar’s global market dominance.
The legislation represents a shift towards eliminating regulatory obstacles, offering a structured approach to a sector long plagued by overlapping agency regulations. The decisive 308-122 vote indicates broad support for cohesive digital asset governance.
According to DOGEai, a policy monitoring group, the bill limits the SEC and CFTC’s direct stablecoin oversight, instead mandating transparency through 1:1 reserve requirements. This change is intended to balance consumer protection with room for innovation among stablecoin providers.
The legislation also aims to boost the U.S.’s competitive stance by countering China’s digital yuan and European regulations. It could transform global payment systems, favoring U.S. dollar-backed stablecoins supported by Treasury resources.
Industry Leaders Support Legislative Progress
Stuart Alderoty, Ripple’s Chief Legal Officer, regards the bill’s advancement as a long-anticipated move toward practical regulatory frameworks. He believes the legislation indicates lawmakers are attentive to both innovators and consumers, ensuring the U.S remains competitive globally.
The cryptocurrency sector has been advocating for streamlined regulations for years, and the GENIUS Act’s pending enactment addresses this demand. Attention now turns to the Senate and the forthcoming CLARITY Act proposal.
As the GENIUS Act approaches becoming law, crypto investors are closely monitoring market responses to this newfound regulatory certainty. The legislation could usher in increased institutional investment and stabilize digital asset prices.
In addition to fostering growth, the new regulations may entice fintech companies back to the U.S. by reducing uncertainty and enhancing competitiveness.
This article was originally published on Blockonomi under the title “GENIUS Act Passes in House, Paves Way for Clear U.S. Stablecoin Rules.”
