Senate approves pro-crypto legislation, the GENIUS Act, in U.S.
The U.S. Senate has taken a significant step forward in embracing cryptocurrencies, with a majority vote of 68-30 in favour of the GENIUS Act. This bill, aimed at establishing a regulatory framework for stablecoins, is seen as a central pillar in the U.S.'s new pro-crypto direction.
Senator Cynthia Lummis, a voice in the United States Congress, has advocated for building a Bitcoin reserve of one million coins within the next five years. This ambitious proposal, if passed, would mark a significant shift in the country's approach to cryptocurrencies.
The GENIUS Act proposes that U.S. dollar stablecoins are backed 1:1 by cash or U.S. government bonds, with reserves subject to monthly audits. This measure is expected to boost private sector demand for U.S. government bonds, potentially providing a significant economic boost.
The Trump family is also venturing into the crypto sphere with World Liberty Financial, a crypto project that has launched a US dollar stablecoin. Meanwhile, TMTG, a company majority-owned by Donald Trump, has raised 2.32 billion US dollars to buy Bitcoin. Reports suggest that Donald Trump himself owns 'a lot' of Bitcoin, according to Eric Trump.
The passage of the GENIUS Act could potentially benefit the Trump family financially, as they are heavily invested in the crypto market. However, it's important to note that President Trump has expressed his support for Senator Lummis' Bitcoin reserve bill.
The U.S. is betting on private sector solutions with stablecoins, while the European Union is pursuing a digital euro. Vice President JD Vance has weighed in on the US Bitcoin reserve proposal, adding to the ongoing debate about the future of cryptocurrencies in the U.S.
Following the stablecoin law, Congress is expected to take up a bill to classify crypto assets. The vote in favour of the GENIUS Act marks a significant milestone in the U.S.'s pro-crypto direction, and it will be interesting to see how the landscape evolves in the coming years.
Recent reports suggest that stablecoins could grow into a market worth $3.7 trillion by the end of the decade. As the world continues to grapple with the potential of cryptocurrencies, the U.S.'s decision to embrace stablecoins could set a precedent for other nations to follow.
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