THE GENIUS BILL HAS PASSED THE HOUSE ✅ · The Unemployable Academy

THE GENIUS BILL HAS PASSED THE HOUSE ✅

Here are the key highlights of the GENIUS Act, which the House passed on July 17, 2025, by a vote of 308–122, sending it to President Trump’s desk:

🏦 1.

Stablecoin Issuance Framework

Establishes the first federal licensing system for banks, credit unions, fintechs, and other entities to issue U.S.-dollar-backed stablecoins.

💰 2.

Reserve & Audit Requirements

Mandates a strict 1:1 reserve ratio—each issued stablecoin must be fully backed by U.S. dollars or similarly liquid, low-risk assets (like short-term Treasuries).
Requires regular audits and prohibits issuers from lending or trading against those reserves.

🔄 3.

Consumer Protections & Transparency

Requires issuers to fully disclose redemption policies, timelines, and fees.
Bans misleading claims like “FDIC-backed” stablecoins.
Allows stablecoin holders priority in redemption during issuer bankruptcy.

🏛️ 4.

Regulatory Oversight

Introduces a dual supervision model: both federal regulators (e.g. Commodity Futures Trading Commission) and state agencies will oversee compliance.

📉 5.

No Interest by Issuers

Licensed issuers are barred from paying any form of interest on stablecoins.
But third-party platforms (e.g. crypto exchanges) may still offer “rewards” or yield.

🏦 6.

Institutional Adoption

Encourages major banks (Bank of America, JP Morgan, Citi) and corporations (Walmart, Amazon) to launch stablecoins—reducing reliance on traditional card networks.

⚖️ 7.

Crypto “Trifecta” Package

Passed alongside two sibling bills: CLARITY Act – Clarifies whether digital assets are classified as securities or commodities. Anti‑CBDC Surveillance State Act – Blocks the Fed from issuing a central bank digital currency.

⚠️ 8.

Criticisms

No FDIC insurance on stablecoins—leaves holders exposed.
Potential redemption delays or fees may reduce consumer protection.
Critics point to industry influence and conflicts of interest tied to Trump-affiliated ventures.

🧩 What’s Next?

Senate: Finalizing companion Crypto Week bills (CLARITY, Anti-CBDC).
White House: President Trump is expected to sign the GENIUS Act imminently.

In summary, the GENIUS Act marks a major step toward legitimizing and expanding stablecoins in the U.S., striking a balance between encouraging adoption and imposing financial safeguards. It’s a landmark shift in U.S. crypto policy—but not without controversy.

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