GENIUS Stablecoin Bill Gains Momentum with Bipartisan Support – Coincu

According to The Block, the GENIUS stablecoin bill, expected to pass with bipartisan backing, could increase demand for U.S. Treasury securities.

This legislation mandates stablecoins be backed by U.S. Treasury securities, potentially mainstreaming stablecoin payments.

Stablecoin Legislation to Mandate Treasury Security Backing

The proposed GENIUS stablecoin bill, advocated by crypto figure David Sacks on CNBC, seeks to mandate stablecoins be backed by U.S. Treasury securities or dollar equivalents. The bill’s requirements include registration and auditing for major issuers with a capitalization above $50 billion. It has garnered bipartisan support, with 15 Democrats favoring it, despite some lawmakers expressing skepticism over potential benefits for the Trump family. Sacks argued that the legislation will create an efficient payment system and increase the dollar’s online prevalence.

Stability in the stablecoin market could anchorage around Treasury-backed assets, potentially sparking trillions in new demand for U.S. Treasuries. Market size for stablecoins stands at $200 billion, with substantial holdings by Tether, underscoring the sector’s rapid growth.

Community reactions emphasized bipartisan cooperation. Proponents like Sacks stress the opportunity to streamline payment systems and enhance the global influence of the U.S. dollar. The discussion reflects the complexity of financial innovation’s regulatory landscape.

Historical Context, Price Data, and Expert Analysis

Did you know? Tether, backing with nearly $120 billion in U.S. Treasury securities, ranks 19th globally, reflecting aggressive integration of traditional financial assets in the crypto industry.

As per CoinMarketCap’s recent data, Tether USDt trades at $1.00, maintaining a market cap of approximately $152.36 billion and a dominating presence of 4.36% in the stablecoin domain. Its 24-hour trading volume saw a notable fluctuation at $147.72 billion, depicting a 68.92% change. Stability over the past weeks involved minor price shifts, with the token exhibiting a consistent supply in circulation.

Insight from the Coincu research team indicates that legislating the GENIUS stablecoin bill could disrupt longstanding financial models by intertwining digital currencies with traditional securities. Regulators may shift focus toward stringent audit mechanisms, ensuring compliance and fostering financial market transparency.