In a significant feat for the cryptocurrency industry, the U.S. Senate passed the GENIUS Act on June 17 with a vote of 68-30, marking the first major digital asset regulation to pass the upper chamber of Congress.The legislation establishes a federal structure for stablecoin issuance, projected to reach a $2 trillion market cap within the next three years.A stablecoin is a type of cryptocurrency that maintains a stable value over time, equivalent to a fixed amount of money. Its value is usually tied to a more stable asset, such as the US dollar or gold.GENIUS ActThe GENIUS Act, identifying Guaranteed and Enforceable Neutral Intermediaries for U.S. Stablecoins, establishes guidelines for how companies can issue and back their stablecoins.The bill requires issuers to hold one-to-one reserves in cash or short-term Treasury securities to guarantee stability. It also involves stablecoin issuers in verifying these reserves every month. The bill will also provide protections to consumers and prohibit tech companies and government officials from launching their tokens while in office.Elizabeth Warren (D-Mass.), the ranking member of the Senate Banking Committee, stated on May 19 that she would oppose the GENIUS Act because it would weaken consumer safeguards, leaving people vulnerable to scams and unnecessary fees.In the Senate Floor meeting, she said, “While a strong stablecoin bill is the best possible outcome, this weak bill is worse than no bill at all.”Her main line of opposition was that the GENIUS Act, which was being voted on, was just days after President Trump hosted a private dinner and VIP White House tour for top investors in his meme coin, TRUMP, which she said would further fuel President Trump’s crypto corruption.Shortly after, the bipartisan negotiators addressed the ethics, transparency, and national security concerns set within the original bill, and then 18 Democrats supported the measure.Scroll to ContinueRecommended ArticlesMark Cuban