Key dealers
- Technical giants such as Meta, Amazon, Google and Microsoft can issue Stablecoins if they follow the revised Genius Act.
- Genius ACT prescribes strict safeguards and provides Treasury Department authority to cancel issuing registrations.
Tech Giants Meta, Amazon, Google and Microsoft can still be able to issue StableCoins according to a proposed two -party change in Genius Act – but only if they follow a rigorous set of protection, according to Bill Language reviewed by journalist Eleanor Terrett.
The amendment would allow these companies to start Stablecoins only if they implement robust financial risk controls, strong privacy protection for consumer data and fair business methods before entering the StableCoin market.
The provision is part of a broader section entitled Banking and Commerce – to protect financial security, which also includes the “master’s accounts” which are intended to ensure that the amendment does not change the current eligibility for FED access.
The revised text also strengthens consumer protection and prohibits all suggestions that Stablecoins be supported by FDIC insurance or by the US government’s full faith and credit. In addition, Stablecoin issuers would be prohibited from using state associated conditions such as “USA” or “USG” in the name of their symbols.
Under the revised framework, the Treasury Department receives expanded authority to cancel issuing registrations for both intentional and reckless violations, where any instance of lack of conformity is potentially treated as a separate crime.
Genius ActBriefly for guiding and ensuring the national interest in Unified StableCoins ACT, a Senate vote failed on May 8 after the Democrats withdrew support over potential conflicts of interest related to President Donald Trump and Trump-affiliated Stablecoin Emittent World Liberty Financial (WLFI).
Bipartisan negotiations have been resumed to change the language of the bill, with the Senate leadership with regard to measures to restart formal consideration before the memory day’s recesses, including the reopening of the change process.
