Ripple CEO Brad Garlinghouse has reacted to the passage of the GENIUS Act, calling it "a truly historic moment."
Garlinghouse has noted that this is the first major financial bill since Dodd-Frank.
The cryptocurrency industry has spent years clamouring for clear rules of the road, he recalls.
The major stablecoin bill, which aims to bring regulatory clarity to the burgeoning sector, was passed in the Senate on Tuesday with a vote of 68-30. A total of 18 crypto-friendly Democrats joined the Republicans to support the bill after initially showing some hesitation.
The much-talked-about bill will establish a federal framework for stablecoins. Only authorized entities such as banks will be allowed to issue dollar-backed cryptocurrencies.
The bill also stipulates that stablecoin issuers are required to publish monthly disclosures that show reserve composition. Major issuers will have to conduct annual external audits.
On top of that, the GENIUS Act will enhance consumer protection and strengthen national security.
The proponents of the legislation previously argued that it would promote innovation and ensure dollar dominance.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team