TechFlow news, May 29 — According to Cointelegraph, the GENIUS Act (Guiding and Establishing National Innovation with United States Stablecoins Act), currently under review by the U.S. Senate, is expected to strengthen the dollar's dominant position in the digital asset economy. By requiring stablecoins to be pegged 1:1 to the U.S. dollar and comply with anti-money laundering regulations, the bill would establish the dollar as the "world’s digital settlement currency."
The bill passed a procedural Senate vote on May 20 by a margin of 66-32 but still faces challenges before a final vote, particularly due to prior lack of support from key Democrats. The legislation prohibits stablecoin issuers from misappropriating or re-pledging reserve assets, allowing reserves to be used only for redemptions and specific safe investments such as Treasury repos.
