US House Passes GENIUS Act, Establishing Regulatory Framework for Stablecoins

The U.S. House of Representatives has passed the GENIUS Act, creating the first comprehensive federal regulatory framework for payment stablecoins. The bill, which now awaits President Donald Trump's signature, mandates that stablecoin issuers maintain reserves equal to the value of their circulating cryptocurrency, aiming to ensure financial stability in the digital asset space. The GENIUS Act also requires issuers to publish monthly reports on their reserves and undergo regular audits. This legislation is seen as a significant step toward integrating digital assets into the mainstream financial system while providing consumer protection. The GENIUS Act complements the previously passed CLARITY Act, which establishes a market structure for digital assets, and the Anti-CBDC Surveillance State Act, which prohibits the Federal Reserve from issuing a central bank digital currency. These legislative actions reflect the U.S. government's proactive approach to regulating digital assets and fostering innovation in the financial sector.