The U.S. Senate is reviewing a new bipartisan draft bill with key amendments to the GENIUS Act, which seeks to establish a robust regulatory framework for stablecoins in the country.
Stablecoin regulation in the United States is at a critical juncture. After months of debate and resistance, the U.S. Senate is considering a new bipartisan draft of the GENIUS Act, which It includes essential amendments to strengthen the supervision of these dollar-linked digital currencies.This bill, also known as the National Stablecoin Innovation Guidance and Establishment Act, aims to create a clear and balanced regulatory framework that protects consumers, ensures national security, and promotes financial innovation.
The amendments to the new draft incorporate technical provisions on issuance, money laundering prevention, bankruptcy management, and ethical standards, seeking a consensus that will overcome the barriers and conflicts that hindered the previous version.
TRADE WITH STABLECOINS WITHOUT HASSLEKey amendments to strengthen regulation in the stablecoin market
The new draft of the GENIUS Act incorporates amendments aimed at strengthening consumer protections and transparency in stablecoin issuance.
Fox Business' Eleanor Terrett highlighted that these changes include a requirement that all stablecoins be backed 1:1 by high-quality liquid assets, such as cash or U.S. Treasury bonds, with mandatory monthly reports detailing the liquidity and composition of those reserves.
In addition, issuers must comply with Strict anti-money laundering (AML) and know-your-customer (KYC) standards, being treated as financial institutions under the Bank Secrecy Act. According to the report, this implies the obligation to implement mechanisms to freeze suspicious transactions and suspend transfers In the case of illegal activities, these measures are subject to federal oversight. While these measures seek to prevent potential fraud and protect users, they also pose a risk in a market with over $230.000 billion in circulation.
Likewise, the law Prohibits issuers from making misleading claims about government insurance or FDIC backing, and strictly regulates marketing to avoid confusion that could harm consumers. The inclusion of these ethical standards responds to previous criticisms about the lack of clarity in user protections and seeks to create a safer and more transparent environment for the mass adoption of stablecoins in the American digital economy.
Dual supervision and bankruptcy management: a balance between states and the federation
One of the most relevant technical aspects of the new draft It is the division of regulatory oversight between state and federal authorities, seeking a balance that facilitates the effective application of the law.
Prepare your wallet and enter crypto today.Stablecoin issuers with a market capitalization above $10.000 billion will fall under the direct jurisdiction of the Federal Reserve and the Office of the Comptroller of the Currency (OCC), while smaller issuers will be able to operate under state regulations, provided they meet minimum federal standards.
In addition, the bill includes specific provisions for handling bankruptcies of stablecoin issuers, an issue that has previously been a significant legal loophole.
Ethics, national security, and limits on tech giants
Another controversial point that the new draft addresses is the Restrictions on the issuance of stablecoins by large technology companies such as Meta or GoogleThe amendments include specific language to reinforce the historical separation between banking and commerce, prohibiting non-financial companies from issuing digital currenciesWith this measure, the GENIUS Act seeks to prevent conflicts of interest and protect consumers, as allowing tech giants to issue stablecoins could concentrate too much power in the hands of companies with diverse commercial interests and without adequate banking regulation.
In addition, the law introduces ethical standards for issuers, including a prohibition on making misleading claims about government support and the obligation to maintain full transparency in their operations. These provisions also address national security concerns, as clear and strict regulation helps prevent risks associated with fraud, money laundering, and market manipulation.
BUY BITCOIN EASILY AND FAST IN ONE CLICKOverall, this bill and its amendments seek to balance financial innovation with the protection of the U.S. economic system and monetary sovereignty, at a time when global competition for digital currency dominance is intensifying.
The new draft of the GENIUS Act reportedly could be discussed next week, according to the US Senate session calendar. If passed, this bill could create a reliable and balanced framework that fosters stablecoin financial innovation without sacrificing stability or national security. Therefore, its potential passage is key to defining the future of digital finance in the country and maintaining US leadership in the global crypto ecosystem.
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