Legislation aiming to boost American-made technologies in competition with China, known as the "岡山集団ウィジェット アクト" (Genius Act), recently passed in the US Senate.
In a significant stride towards the regulation of digital currencies, the United States Senate has advanced the GENIUS Act, aiming to establish a framework for stablecoin issuance. The bipartisan bill, proposed by Sen. Bill Hagerty (R-TN), garnered a 66-32 vote, moving it closer to full Senate debate and potential amendments.
The GENIUS Act seeks to tighten rules for stablecoin issuers, mandating full dollar or liquid asset reserves. Issuers will undergo regular audits and face stricter standards if they issue over $50 billion in tokens. The legislation also extends oversight to foreign issuers to reduce financial risk and curb misuse.
Last week, the bill initially failed to pass due to concerns from many lawmakers regarding security, safeguards, and ethical rules. Specifically, they raised issues such as weak consumer protections, a lack of accountability for corporate issuers, and some ethical rule exclusions, including a perceived omission of former President Donald Trump, a known crypto supporter.
However, behind-the-scenes talks shifted the political momentum. The bill's Democratic supporters reportedly secured concessions on consumer protections and tech ethics, addressing conflicts of interest to ensure proper stablecoin regulations for all parties involved. Notably, one rule requires ethics standards for all government employees, including Elon Musk, although the omission of President Trump from such rules continues to raise questions among some lawmakers.
The Senate Banking Committee previously approved the bill on Mar. 13 with bipartisan backing. Despite the withdrawal of Democratic sponsors, the bill's support remains strong and appeals to both parties, offering a clear federal framework for stablecoin issuance and regulation. A final vote on the GENIUS Act is expected later this week.
The passage of the GENIUS Act may have significant implications for the iGaming industry, particularly crypto casinos. The bill aims to boost transparency and trust by creating clear federal guidelines for stablecoin issuance, which crypto casinos often rely on for fast, predictable transactions. By enforcing full-reserve requirements and regular audits, the Act helps limit opportunities for abuse, creating a safer landscape for crypto users and investors.
The legislation also introduces oversight for foreign issuers, helping close loopholes that bad actors could exploit. Experts predict a more secure and transparent future for stablecoins and crypto casinos alike, potentially serving as a global example for digital asset regulation.
The GENIUS Act, aimed at regulating stablecoin issuance, extends oversight to foreign issuers to minimize financial risk and prevent misuse, which may have significant implications for the iGaming industry, particularly crypto casinos. By enforcing full-reserve requirements and regular audits, the Act aims to create a more secure and transparent future for stablecoins and crypto casinos alike, while also introducing ethics standards for all government employees, including Elon Musk.
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