Stablecoins Set for Regulatory Revolution: U.S. Senate Passes Groundbreaking Bill
A new Senate bill aims to regulate stablecoins, cryptocurrencies designed to maintain a constant value, as global adoption grows. It now awaits approval from the House and President Trump. If enacted, firms must back stablecoins with liquid assets and disclose reserves monthly, promising wider acceptance.
The U.S. Senate has approved legislation aimed at creating a comprehensive regulatory framework for stablecoins, gaining momentum as a vital component of the global cryptocurrency industry. Stablecoins, known for their steady value typically pegged to the U.S. dollar, are favored by traders for seamless transitions between digital tokens.
The bill, dubbed the GENIUS Act, still requires passage by the Republican-majority House of Representatives, followed by President Donald Trump's green light. Analysts predict the law could drive corporate adoption across various industries by providing legislative clarity and assurance.
Should the bill become law, stablecoins will need backing by transparent, liquid reserves like U.S. dollars and Treasury bills. Issuers will be required to disclose reserve compositions monthly. Major companies like Bank of America and Morgan Stanley are evaluating crypto investment opportunities, and international firms such as Societe Generale are also exploring stablecoin launches.
(With inputs from agencies.)
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