US Senate adopted StableCoin Act (“Genius Act”)
With a cross-party majority of 66 to 32 votes, the US Senate has adopted the so-called Genius Act (Guiding Emerging National Innovations for Unified Standards), which defines the regulation of stablecoins.
Stable coins are digital assets with a connection to an asset such as the US dollar. For the first time, the Genius Act creates a comprehensive nationwide regulatory framework for stable coins. A few weeks ago, the draft threatened to fail. Some Democrats stood in crypto projects due to the personal participation of the Trump family. Now it made the template with the support of both parties by the Senate.
Key points of the Genius Act
The Genius Act obliges issuers of Stablecoinsto cover their digital assets with liquid and secure assets such as US state bonds. In addition, you have to comply with strict anti-money laundering regulations and prioritize the repayment to investors if bankruptcy. Another component of the law is the ban for technology companies such as Meta and Google to publish their own stable coins in order to prevent an excessive market concentration.
Although the law found cross -party support, some Democrats expressed concerns about possible conflicts of interest. Senator Elizabeth Warren particularly criticized the potential financial advantages for President Donald Trump, whose family is invested in StableCoin USD1. Despite these concerns, supporters such as Senator Mark Warner emphasized the importance of a clear regulatory framework for promoting innovation and consumer protection.
United States rely on stable coins
In the first week after taking office Signed President Trump Various executive orders to digital assets. The aim of the strategy was to establish the United States as a leading crypto nation. One of the key points concerns stable coins. The Global increased demand for US dollars benefits the United States because it creates a constant buyer for their debts. To illustrate: The leading stable coin provider, Tether, manages more US government bonds than the Federal Republic of Germany with over 120 billion USD.
The reaction from the crypto industry to the StableCoin law was mostly positive. Industry associations such as the Blockchain Association and leading stable coin emitters such as Circle and Paxos praised the Genius Act as a long overdue step towards legal certainty. International observers also follow the US regulation: Experts expect other large economic areas-such as the EU with mica or countries such as Singapore and Japan-lean on the US model. The Genius Act not only has national importance, but also the potential to set global standards for digital payment infrastructures.
Switzerland in particular should rethink their approach to stable coins. Since 2024 apply significantly stricter regulations for domestic companiesincluding a bank license and the complete identification of all customers. These rules of FINMA are similar to a ban on business and give Switzerland a significant location disadvantage. In view of the fact that Tether generated a net profit of $ 10 billion last year, this appears tactically.
