Senate approves bill supporting cryptocurrency industry in the US
The GENIUS Act, a bill aimed at establishing regulations for stablecoins, has taken a significant step forward as it moves to the House of Representatives for a vote. This development marks a crucial milestone in the U.S.'s evolving approach towards cryptocurrency.
The bill, which passed in the Senate, has garnered support from key figures, including Vice President JD Vance and the Trump administration. Treasury Secretary Steven Mnuchin and crypto czar Brian Brooks, both from the Trump administration, have voiced their backing for the act.
The GENIUS Act proposes that U.S. dollar stablecoins must be backed 1:1 by cash or U.S. government bonds, with reserves checked monthly. This measure is designed to ensure stability and confidence in the growing stablecoin market.
Senator Cynthia Lummis introduced the Bitcoin Reserve Act, a separate proposal suggesting that the U.S. should build a 1 million coin Bitcoin reserve within 5 years. U.S. President Donald Trump has expressed his support for this act, although the identity of the female politician who introduced the Bitcoin Reserve Act in the Senate remains unspecified.
Trump's support for cryptocurrency is not limited to policy. TMTG, a company majority-owned by the U.S. president, has raised 2.32 billion USD to buy Bitcoin. According to his son, Donald Trump owns "a lot" of Bitcoin.
Tristan, who has a background in economics and journalism, has been actively involved with Bitcoin since 2020. He has gained journalistic experience outside the Bitcoin space and is currently the editor-in-chief at Blocktrainer.de. Tristan's libertarian economic background has likely influenced his interest in cryptocurrency, which is often associated with decentralised economic systems.
The passage of the GENIUS Act could have far-reaching implications. Recent reports suggest that the stablecoin market could grow to $3.7 trillion by the end of the decade, potentially boosting private sector demand for U.S. government bonds.
Meanwhile, the European Union is pursuing the Digital Euro, indicating a global race towards embracing digital currencies. The U.S., however, seems to be betting on private sector solutions with stablecoins.
If approved by the House and signed by President Trump, the GENIUS Act could mark a turning point in the U.S.'s approach to cryptocurrency, signalling a new pro-crypto direction.
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