The U.S. Senate has passed the G.E.N.I.U.S. Act with bipartisan support, marking a significant step toward regulating payment stablecoins. The act mandates strict measures for stablecoin issuers, including a 1:1 reserve backing and monthly public disclosures to ensure transparency and stability in the market. This landmark legislation establishes the first comprehensive federal framework for stablecoin regulation in the U.S., with regulatory oversight delegated to key agencies like the Federal Reserve, OCC, and Treasury. While the act doesn’t allocate funding directly, it lays the groundwork for increased integration of stablecoins into the U.S. payment system. The G.E.N.I.U.S Act allows U.S.-regulated banks, credit unions, and licensed nonbank issuers to issue stablecoins, while also encompassing state-regulated entities and compliant foreign issuers. The impact on traditional payment methods like Visa and Mastercard is evident as the growth of stablecoin payments has surpassed these existing systems in 2024, according to anecdotal evidence. The act’s implementation will be phased, with registered broker-dealers permitted to offer stablecoin custody. This legislation paves the way for increased use within DeFi protocols and other blockchain ecosystems, while impacting governance tokens for stablecoin protocols like Maker (MKR) and Frax (FXS). Industry experts remain cautious regarding public statements from prominent figures like Arthur Hayes, Chengpeng Zhao (CZ), and Vitalik Buterin. The SEC, OCC, and NCUA will implement the act’s mandates over phase-in periods. Institutions such as PayPal and Stripe recognize benefits in supporting stablecoin payments, highlighting positive consumer and merchant experiences.