Bitcoin Hits $110K as GENIUS Act Boosts Crypto Confidence

Bitcoin GENIUS Act Latest News

• Bitcoin has surged past the $110,000 mark for the first time, driven by renewed investor optimism following the progress of a major crypto bill in the U.S. Senate — the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins). 
• The bill, which focuses on regulating stablecoins, gained bipartisan support, with some Democrats who initially opposed it now backing the measure.
• This legislative progress is expected to benefit crypto businesses, boosting market confidence.
• There are, however, concerns of conflict of interest, as Trump and Melania, both active in the crypto space and involved with meme coins, could personally gain from the bill’s impact on the crypto market.

GENIUS Act

• The GENIUS Act primarily aims to regulate stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar. 
• It marks a significant policy shift, especially by allowing big tech companies to issue stablecoins.

Key Provisions of the Bill

• Mandatory Compliance: Issuers must adhere to anti-money laundering (AML) and anti-terrorism laws, along with privacy regulations under existing banking norms.
• Full Reserve Requirement: Stablecoins must be backed 1:1 by fiat currency or high-quality liquid assets.
• Separation of Funds: Issuers must keep reserves separate from operational funds.
• Transparency & Audits: Regular third-party audits and public disclosures of reserves are mandatory.

Political & Ethical Concerns

• Some lawmakers have raised concerns about the Trump family’s involvement in crypto for personal gain and lack of oversight. 

Broader Implication

• The act is seen as the first major federal step to bring stability and accountability to the rapidly growing crypto sector, while also legitimizing the role of stablecoins in the U.S. economy.

Criticism of the GENIUS Act

• Inadequate Consumer Protections
  • It fails to offer consumers the same level of protection as traditional payment systems. 
  • Experts argued that the Act falls short of minimum safeguards required for stablecoin users.
• Risks of Illicit Use and Financial Instability
  • Stablecoins are already involved in over 60% of unlawful crypto transactions. 
  • Rapid growth without robust safeguards could expand their use in illicit activities and threaten financial stability.
• Conflict of Interest and Political Favoritism
  • Concerns were raised over potential conflicts of interest, particularly with President Trump’s personal involvement in the crypto sector. 
  • Experts accused the bill of enabling favoritism, such as tariff exemptions and political appointments, in return for purchasing Trump’s crypto tokens.
• Big Tech Involvement and Regulatory Loopholes
  • Critics argue the bill’s provisions allowing Big Tech firms to issue stablecoins would erode the long-standing separation between banking and commerce. 
  • Although amendments were introduced to require regulatory approval, analysts maintained that the final version contains loopholes that could be exploited, thereby undermining competition, privacy, and market stability.

Bitcoin GENIUS Act FAQs

Q1. What caused Bitcoin to surge to $110K?

Ans. The U.S. Senate’s support of the GENIUS Act boosted investor confidence, driving Bitcoin to an all-time high.

Q2. What is the GENIUS Act?

Ans. It’s a bipartisan bill that regulates stablecoins and allows tech firms to issue them under strict financial safeguards.

Q3. Who benefits from the GENIUS Act?

Ans. Crypto businesses and tech firms gain legal clarity, though critics warn of benefits to Trump-affiliated crypto interests.

Q4. What are the bill’s key provisions?

Ans. It mandates full reserves, AML compliance, fund separation, and third-party audits for stablecoin issuers.

Q5. What criticisms does the GENIUS Act face?

Ans. Critics argue it lacks consumer protections, invites Big Tech overreach, and enables potential Trump-related conflicts of interest.

Source: IE | RW