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By: International law firm WilmerHale.
The US House of Representatives has passed stablecoin legislation as part of "Crypto Week" on Capitol Hill. S. 1582, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS or the Act), passed the US Senate in June and passed the US House of Representatives yesterday (July 17). The bill is expected to be signed into law as early as today (July 18) in the coming days, as the White House has been urging Congress to deliver both GENIUS and the crypto market structure legislation (the CLARITY Act) before the August recess.
GENIUS establishes a clear regulatory framework for the issuance of "payment stablecoins"-digital assets backed by low-risk reserves like cash or Treasuries and designed to maintain a fixed value attached to a national currency, such as the US dollar. Unlike crypto assets that may have speculative value, payment stablecoins are designed to serve as a convenient and cost-effective payment method. This is particularly true for cross-border payments, where payment stablecoins typically have lower transaction fees than do traditional bank transfers. Despite their growing use in the United States, these products have operated with little, if any, direct federal oversight. GENIUS addresses this gap by seeking to prioritize consumer protection, encourage responsible innovation and reinforce the US dollar's role as the world's reserve currency.
Motivating Policy Concerns
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