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(Guiding and Establishing National Innovation for U.S.
Stablecoins) Act, which seeks to mainstream stablecoins.
It's not just bitcoin that has Introduced by Senator Bill Hagerty, R-Tenn., in early
captured the imagination of May, the GENIUS Act has bipartisan support as well as
bipartisan opposition. The legislation now moves for a
Americans. vote in the U.S. House where a similar bill is pending that
mirrors closely the GENIUS Act. It's called the STABLE
(Stablecoin Transparency and Accountability for Better
Ledger Economy) Act.

"Bitcoin is a $2 trillion asset," Keil noted. "The store of Proponents assert that stablecoin legislation will legitimize
value use case is pretty obvious. You've got retail investors, the asset class and help preserve the dominance of the
institutions, publicly traded companies and nation states, U.S. dollar in financial systems. Opponents have raised
all using bitcoin as a store of value. The next phase is concerns about long-term stability and lack of adequate
payments." consumer protections.

Keil added, "As time goes on, I believe the medium of The GENIUS Act, which passed the Senate on a vote of
exchange era will grow." And as such it will compete with 68 in favor and 30 opposed (including two Republicans),
the Visa-Mastercard duopoly. "Now we're not talking establishes a regulatory framework for stablecoins, along
overnight; we're talking gradually over years," he said. with explicit monthly reserve disclosures, and audited
The rationale for merchant interest in accepting bitcoin reports for issuers with over $50 billion in stablecoins
is pretty obvious, Keil noted, as the number one problem outstanding. It includes explicit monthly reserve
they face is inflation. "If you had put $100 under your disclosures and requires audited issuer reports.
mattress 100 years ago, today it would only be worth $1. It
would have lost 99 percent of its value," he said. Several members of Congress tried to attach favored bills
to the GENIUS Act, including Senator Dick Durbin, D-Ill.,
Bitcoin, on the other hand, tends to accrue value. In 2016, a but those moves were cut short when the Senate voted to
single bitcoin was worth about $100. Today it's worth over end debate just before the Memorial Day weekend and
$100,000. proceed with the legislation without amendments.

The best way to help merchants going forward isn't dual (Senator Durbin had planned to attach the Credit Card
pricing, or chopping off basis points, according to Keil. "It's Competition Act to the bill. That legislation would have
accepting a form of money that stores value over time," he required merchants be allowed to choose which payment
said. "The cost of living for those who save their money in networks their transactions get processed over, only one
the form of bitcoin goes down every year." of which could be owned by Mastercard and Visa.)

Steak 'n Shake, he noted, is holding on to the bitcoin it The STABLE Act, authored by Representatives French Hill,
receives from customers. R-Ark., and Bryan Steil, R-Wisc., sets reserve mandates
and licensing procedures, but also contains provisions for
Square will help millions of merchants accept bitcoin
multi-state oversight.
Square supporting acceptance of bitcoin is big news, Keil
said. "Four million or so merchants are going to start It requires issuers to maintain reserves backing the
being able to accept bitcoin," he said. Those merchants can stablecoins they hold on a one-to-one basis using U.S.
convert bitcoin to fiat currencies, like the dollar, or not. currency or other similarly liquid assets. They also must
"That's one of the things we help merchants with, making publicly disclose their redemption policies and make
that kind of decision," Keil said. public details of their reserves.

Bitcoin payments on Square is the latest addition to Block's The STABLE Act was approved by the House Financial
growing Bitcoin ecosystem, which includes Cash App's Services Committee, which is chaired by Hill, but has not
bitcoin buy, sell and transfer capabilities; Bitkey, a self- yet been presented for a vote before the entire House. Once
custody Bitcoin wallet; Proto, a suite of Bitcoin mining it is approved by the full House, a special committee will
products and services; and Spira, which builds and funds be appointed to iron out the differences between it and the
open-source projects that advance the use of bitcoin, Block GENIUS Act, and presented to the House and Senate for
explained in a press release. final votes before it can be signed into law.

Congress advances stablecoin legislation That will need to happen in short order, as President
Trump indicated he wants to sign into law a stablecoin bill
It's not just bitcoin that has captured the imagination of by August.
Americans. The U.S. Senate just approved the GENIUS
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