GENIUS Act Could Establish Dollar Dominance, Write 'Rulebook'
The GENIUS Act, aimed at regulating US stablecoins, is set for a crucial vote in Congress. A Senate vote of 68-30 advanced the bill, supported by a mix of Democrats and Republicans, with backing from the Trump administration. The legislation proposes an oversight system for stablecoin issuers, requiring 1:1 backing, regular audits, and compliance with Anti-Money Laundering regulations. Critics, including Senator Elizabeth Warren, argue it lacks safeguards against self-dealing. Key amendments include preventing elected officials and their families from issuing stablecoins. If enacted, the Act could enhance the dollar's role in the digital economy and establish a framework for future crypto regulation. It may also counter de-dollarization trends by solidifying the dollar's influence through dollar-pegged stablecoins, which dominate the market.
