- After years of quarreling and delays, the US Senate passed the first law on cryptocurrencies-the “Genius Act”.
- It directs the StableCoin regulation into regulated railways and creates the first nationwide rules after years of the “crypto game west”.
The US Senate has accepted the Guiding and Establishing National Innovation for Us StableCoins (Genius) Act through a cross-party vote and thus adopted a law for the first time that focuses on cryptocurrencies. It is the most important finance law that has been passed since the Dodd Frank Act of 2010.
Pre -driven by the senators Bill Hagerty and the senators Kirsten Gillibrand, Cynthia Lummis and Angela Sobrooks, the law creates a clear federal regulatory system for stable coins in payment transactions. The genius law is also supported by the Republican Tim Scott, chairman of the banking committee and long-time supporter of clear regulations for cryptocurrencies and other digital assets.
The draft law was passed in March, with all Republicans and five democratic MPs voted for the draft after almost 40 amendments had been made. It is the first law with its origin in the banking committee since Senator Scott has chaired its chair.
Genius Act finally brings clarity for the crypto industry
Brad Garlinghouse, CEO von Ripple, welcomed the step and designated him as a milestone after years of demands in the industry for legal certainty:
“For years, crypto companies have been asking for congress to adopt crypto legislation and rules for the way. This is the first major financial law since Dodd-Frank-the first crypto law that has been passed in the Senate and is now being forwarded to the House of Representatives, a truly historical moment.”
Garlinghouse’s comment points out that crypto and digital financial platforms had to deal with unclear rules and changing instructions from various government agencies for a long time. The genius law ends this confusion through the development of a enforceable framework that meets both the need for innovation and the need for supervision. Also Senator Scott commented on the development of the law:
“Today is a brave step forward-not only for the financial innovation, but also for the American leadership role, consumer protection and the economic possibilities. With the Genius law, we bring clarity to a sector that is clouded by uncertainty, and prove that a non-partisan, principal leadership can still provide real results for the American people.”
Cross -party initiative brings the first federal law for stablecoin
The draft law was preceded by intensive consultations between legislators, lawyers, representatives of the industry and regulatory officers. For the first time, a subcommittee of the Banking Committee of the Senate for digital assets was involved in the initiative, which Senator Lummis chairs. Their goal was to create fair and practical crypto laws, as part of the promise of the chairman Scott, to work for clear rules and better protection for users of digital assets. Senator Scott named the broad cooperation across party borders as a key factor. Scott said:
“This did not happen by chance. It happened because we have preceded – across the party borders and with determination. I am particularly grateful for Senator Hagert for his leadership role and the hard work of many of my colleagues to bring this law about the finish line.”
After the vote in the Senate, the law is presented to the House of Representatives for approval. In the event of a farewell, the first common federal rules for payments in stablecoins, a primary category of digital currencies that are supposed to keep a fixed value, would be determined. The aim is to enable the use of digital dollars in a safer way and at the same time protect users and to improve national security.
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