The Senate Banking Committee gave an initial thumbs up to the Genius Act, which would create a regulatory framework for the cryptocurrency known as stablecoins. The bill sets up licensing guidelines, creates reserve requirements, and other ground rules for those who want to issue payment stablecoins.
Supporters of the legislation say it will improve transaction efficiency, free up capital and drive US treasury demand.
Sen Tim Scott, R-SC: “If we are going to have economic supremacy in the world, it requires for us to encourage, frankly, innovation before we stifle it with too much oppressive regulation.”
According to Coinbase, stablecoins are a cryptocurrency with a stable value or price because they are directly tied to an asset, like the US dollar.
The Genius Act requires stablecoins to be backed at least one-to-one with reserves that can include the US dollar, Treasury notes or bonds, or other approved assets. Those…
