Overview

• Senate will vote Tuesday on the GENIUS Act after advancing the bill through a 66-32 cloture motion last week.
• The legislation would require banks and private issuers approved by federal regulators to back stablecoins one-to-one with cash or short-term Treasury securities.
• It mandates federal oversight for stablecoins with market capitalizations above $10 billion and effectively restricts non-financial firms to partnering with regulated issuers instead of issuing independent tokens.
• Wall Street broker Bernstein projects the act could transform stablecoins from a crypto settlement tool into a mainstream payment infrastructure for the internet.
• Lawmakers including Rand Paul and Elizabeth Warren have raised concerns over federal overreach and potential risks to financial stability under the proposed safeguards.