US senate passes bill to regulate stablecoins amid corporate interest
The United States Senate has passed significant legislation aimed at regulating stablecoins, marking a pivotal change in the federal government's stance toward a rapidly expanding sector of the cryptocurrency industry.
The bill, referred to as the GENIUS Act, is now pending approval in the House of Representatives before it can be sent to President Donald Trump for the final go-ahead.
Stablecoins — digital currencies usually tied 1:1 to the U.S. dollar — have emerged as essential instruments for cryptocurrency traders and are gaining increasing attention from major global businesses. The legislation proposes that stablecoins must be backed by highly liquid assets like U.S. dollars and short-term Treasury bills. Additionally, it requires issuers to publicly reveal the makeup of their reserves on a monthly basis.
Experts in the industry believe this bill could boost the adoption of stablecoins in various sectors by offering necessary regulatory clarity and legal assurance.
PayPal was the first significant fintech company to introduce a stablecoin, launching PYUSD in August 2023. Circle Internet, which recently went public, issues USDC, one of the most commonly used stablecoins, boasting a market cap of $61.5 billion.
Paxos produces USDP and USDG, in addition to BUSD through a partnership with Binance. Tether continues to be the leading player with its USDT token valued at over $155 billion.
MakerDAO’s DAI stablecoin, which has a market cap of $5.4 billion, completes the list of the top four.
Should the GENIUS Act be enacted, it would signify the United States’ first thorough regulation of stablecoins — an action likely to influence the future of digital currencies in both national and international markets.
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