The “guidance and the establishment of national innovation for American stablecoins of 2025” (Genius Act), a Bipartisan bill which is currently making its way through the congress, aims to provide the first robust regulatory framework for the sometimes volatile cryptocurrency market. If it is adopted, the measure could open the way to digital currency to revolutionize the American and global economy more.
The act of genius got closer to a pass closer to the passage to the Senate this week when 18 Democrats vote With the Republicans to put an end to the debate on the measure. After a certain controversy on the proposed amendments which threatened to disembark the bill, the head of the majority of the Senate, John Thune, finally chose to go ahead without any vote on the changes.
While the legislation is still confronted with several other V, senator Cynthia Lummis (R-Wyo.) Said that she expects a final vote on the bill next week. The Chamber should further adopt the bill before sending it to the office of President Donald Trump for signature.
But what is the law on genius and what does this mean for the financial future of daily Americans?
“Stablescoins” under the title of the bill simply refer a type of digital money designed to maintain regular value – generally linked to something like the US dollar. Unlike Bitcoin, which can have wild oscillations in value, Stablecoin is supposed to be worth approximately one dollar. People use online stable stables to send money quickly, have value safe or exchange other cryptocurrencies without worrying about swings of large prices.
Stablecoins are favored by some because they are stored digitally and are transferred more quickly than waiting for a transaction to be processed by your bank or for a check is erased. In the middle of the climb of cryptocurrency in general, Stablecoins also gain popularity. By passing at least $ 161 billion stored Forbes.
The act of genius would require that stablecoins be linked to the US dollar, US treasury bills or another stable equivalent. The bill also obliges companies to maintain significant reserves to prevent a race on them, as the periodic bank operates on paper money throughout American history.
Supporters of the bill argue that it is necessary to ensure that no one is taking advantage of or has deceived their money by unscrupulous companies selling other cryptocurrencies. (Sometimes the term “bitcoin” is used familiarly to refer to crypto, but Bitcoin is only a type of cryptocurrency.)
The California financial and innovation department followed at least 387 different scams linked to crypto. THE Cleveland Scene reported On a man who lost $ 500,000 via a cryptographic scam. The elderly and older Americans are particularly vulnerable to these scams, as they may not be familiar with terminology or cryptocurrency practices.
The bipartite support of the bill testifies to the urgency of the problem for both parties. The legislation was presented for the first time by the republican senator Bill Hagerty du Tennessee and the Democratic Senator Kirsten Gillibrand in New York.
According to Hagerty, the law on engineering “will cement the domination of the US dollar, will protect customers, increase the demand for American treasury bills and guarantee that innovation in the space of digital assets is in the hands of the United States of America, not of our opponents.”
Gillibrand echoes similar themes on innovation and to put America first, claiming that the law “will provide regulatory clarity to this important industry, will maintain innovation on land, add robust consumer protection and reaffirm the domination of the US dollar.”
Under the provisions of the bill, companies would need According to the Senate, a “monthly public disclosure of the (their) composition of reserve” and great creators of stables need to publish “annual financial statements”, according to the senatorial committee of banks, housing and urban affairs.
As ABC News The described, the law would treat stablescoins as species, ensuring that savings are protected from volatility.
“The bill establishes rules for stablecoin issuers, including a mandate according to which companies have a reserve of assets underlying cryptocurrency”, the point of sale reported. “This stipulation aims to protect consumers, who otherwise risk failure to withdraw their assets in the event of rapid and widespread parts of the parts.”
The law “would oblige issuers to grant parts to reimbursement in the event of bankruptcy” and “the obligations emit to comply with certain anti-whiteness rules and anti-terrorist sanctions”.
The Trump administration indicated that it generally supports the law, and the president notably sought to settle as a leader in the cryptocurrency space. Last July, then candidate Trump gave The opening address of the Bitcoin 2024 conference, promising to make America the world leader in cryptocurrency technology.
However, there are conservative republicans who dispute the proposal.
“It’s a huge gift for Big Tech,” said senator Josh Hawley (R-MO) THE New York Times. He said that the law as it is written is not enough to protect the data from citizens. “It allows these technological companies to issue stablecoins without any type of control”, Hawley said THE Times. “I don’t see why we would do that.”
Hawley maintains that large technological companies like Meta, the Facebook parent company, would probably try to create their own stablecoins which, according to him, would lead to data exploitation.
The adoption of the law was also exercised on the attempts of Senator Dick Durbin (I-I-I) and Senator Roger Marshall (R-SKS) to use the law of engineering to adopt their own legislation on credit cards, the law on credit card competition, which “would require issuers of bank card to ensure that merchants have options beyond visa and mastercard transactions when consumers have spent their credit cards, “said according to to to to be to to to to Diving payments.
Attempts to add other languages to the law have already aroused criticism from Vice-President JD Vance and trade groups such as American credit cooperatives. They support An act of “clean” genius.
If supporters of the Act on Engineering are correct, the law could make stablecoins a safer and more practical option for everyday Americans. By demanding that each part be supported by real assets such as US dollars or cash securities, the law helps guarantee that consumers can trust the value of the digital money they hold. This means faster transactions, less costs and the convenience of digital payments – without the risk of losing everything overnight.
That the law on genius becomes the law, one thing is certain: the era of digital money is there, and Washington can no longer afford to ignore it. While the Americans are turning more and more to cryptocurrencies for payments, savings and investments, the need for a clear, secure and pro-American regulatory framework is more urgent than ever.
Contributor Amac Newsline Matt lamb is an assistant editor of the Fix college. He previously worked for students for Life of America, students for life and USA turning point. He previously interned to open books. His writing also appeared in Washington’s examiner, the federalist, the Lifesitenews, the Revue de la vie human, the leaders of the United States and other points of sale. The opinions expressed are his. Follow it @ Mattlamb22 on X.
