GENIUS Act passed the Senate debate motion, Bitcoin broke through $110,000, setting a record high

Recently, the stablecoin bill "GENIUS Act" passed the Senate debate motion with 69 votes in favor and 31 votes against, and officially entered the revision stage.

The U.S. Senate voted 69-31 on Monday to advance a bill that would create a framework for regulating stablecoins, kicking off what could be a final push to get the measure over the finish line this year.

The Senate Finance Committee approved the "GENIUS Act" in May, setting the stage for broader consideration by the full Senate. The House Financial Services Committee also passed its own version of a stablecoin bill earlier this year.

The legislation, which is an acronym for "Stability, Genesis, and Integration of Useful Network संपत्तिव्यवहार Act," would require issuers of stablecoins to maintain a 1:1 reserve of high-quality assets, such as U.S. Treasury bonds or cash. It would also prohibit stablecoins from paying interest or other forms of yield to holders.

The bill is a key priority for Senate Banking Chairman Tim Kane, who has been working for months to get the measure approved. House Financial Services Chair Maxine Waters has also expressed support for swift passage of a stablecoin bill.

Stablecoins are a type of cryptocurrency that are designed to maintain a stable value, typically pegged to a fiat currency, such as the U.S. dollar. They have become increasingly popular in recent years as a means of making cross-border payments and investing in decentralized finance (DeFi) protocols.

However, there are concerns that stablecoins could pose systemic risks to the financial system if they are not adequately regulated. For example, if a large issuer of a stablecoin were to become insolvent, it could trigger a liquidity crisis in the crypto market and spill over into the broader financial system.

The GENIUS Act is intended to mitigate these risks by setting clear rules for the issuance, redemption, and stability of stablecoins. It would also subject stablecoin issuers to regular examination by the appropriate federal agencies.

In addition to the core provisions on capital requirements and interest payments, the GENIUS Act would also:

* Grant the Treasury Secretary the authority to approve the use of foreign stablecoins in the United States.

* Require issuers of stablecoins to provide regular reports on their activities and financial condition.

* Create a new task force to study the role of digital assets in the U.S. financial system.

The Senate is expected to begin debating the GENIUS Act in the coming weeks. The House and Senate will then need to pass identical versions of the bill before it can be sent to President Biden for his signature.