The US stablecoin bill passes a key Senate vote, still requires approval from the House and the President

Recently, the U.S. Senate passed a motion to end debate on the GENIUS Act stablecoin bill with a vote of 66 in favor and 32 against. This result clears a significant hurdle for the final legislation of the bill, which will now proceed to full Senate debate and amendment process.

Since the bill was officially introduced in early February this year, its text has undergone multiple revisions. The latest version adds more provisions regarding anti-money laundering, consumer protection, and custody, while also setting restrictions on tech giants issuing stablecoins. The process of advancing the bill has also showcased the tug-of-war between bipartisan legislators on the issue of stablecoins.

If the GENIUS Act ultimately becomes law, it will be the first federal-level stablecoin legislation in the United States, and its impact should not be underestimated.

The core content of the bill includes:

1. Define a payment stablecoin as a digital asset used for payment or settlement, requiring it to be backed by reserves of USD or other high-quality liquid assets at a 1:1 ratio.

2. A clear application process for issuance licenses has been established, introducing a "dual regulatory framework" that allows issuers to register at the state or federal level.

3. Require the stablecoin issuer to maintain a 1:1 reserve ratio, with reserve assets being high-quality liquid assets.

4. The issuer must publicly disclose the reserve assets and redemption policies.

5. Classify stablecoin issuers as financial institutions under the Bank Secrecy Act, requiring them to fulfill anti-money laundering obligations.

6. Specify that stablecoin holders have priority for repayment in the event of the issuer's bankruptcy.

7. It is clear that payments made in stablecoins are not considered securities, commodities, or investment companies.

The bill also prohibits stablecoin issuers from making misleading claims about FDIC insurance or using terms related to the U.S. government in their naming, and restricts non-financial tech companies from issuing stablecoins unless they comply with regulatory requirements.

During the advancement process, members of both parties reached a consensus on certain controversial issues. For example, provisions targeting specific cryptocurrency projects were removed, shifting the focus to regulating the entire stablecoin sector.

After the GENIUS Act passes the Senate, it still needs to be approved by the House of Representatives and ultimately signed by the President to become law. The House of Representatives is controlled by a Republican majority, and the bill is expected to pass there relatively easily.

If the GENIUS Act is ultimately legislated successfully, it will have a profound impact on the stablecoin market. It may drive industry consolidation, enhance consumer trust, improve market transparency, and potentially attract more institutional investors. However, non-financial tech companies issuing stablecoins may face more restrictions.

Despite significant progress on the bill, there are still some unresolved issues. For example, the bill does not explicitly restrict certain individuals from participating in crypto projects, which could become a focal point for future debates.

Overall, although the GENIUS Act stablecoin bill has not officially become law, the passing of the motion to terminate debate has paved the way for it. If it can successfully pass all hurdles, the bill will become the first federal-level stablecoin regulatory framework in the United States, potentially reshaping the entire stablecoin market landscape.