The GENIUS Act has just been passed, and American banks plan to issue stablecoins.

This second-largest bank in the United States intends to keep pace with its peers in exploring tokenized deposits, but will only formally invest once a clear regulatory framework is established.

Original source: cryptoslate

Compiled by: Blockchain Knight

According to a report by Reuters on June 11, Bank of America CEO Brian Moynihan confirmed that the bank plans to issue a stablecoin pegged to the US dollar and is working with other industry participants for internal development.

However, Moynihan added that any potential issuance progress will depend on the upcoming federal regulations. He also told investors that although demand remains uncertain, banks “must be prepared.”

He added that U.S. lawmakers are discussing a bill that “will enable us to determine whether there are real business opportunities,” which will set uniform requirements for reserve quality, redemption, and disclosure.

These remarks indicate that this second-largest bank in the United States intends to keep pace with its peers in exploring tokenized deposits, but will only officially invest once a clear regulatory framework is established.

Across the Atlantic, the FORGE division of Société Générale launched USD CoinVertible on June 10, which is a dollar token natively issued on the Ethereum and Solana blockchains.

This product is the second stablecoin from this French bank following the launch of the euro version in 2023, and it complies with the EU’s Markets in Crypto-Assets (MiCA) framework. SG-FORGE has appointed BNY Mellon as the reserve custodian and will publish collateral details daily.

The trading plan conducted through multiple brokers is set to start in early July, enabling 24-hour exchanges between USD, EUR, and the token. CEO Jean-Marc Stenger stated that the demand from customers for round-the-clock settlements makes the USD tool the “obvious next step.”

While these stablecoins are developing, on June 11, the Senate voted 68 in favor and 30 against to initiate the cloture procedure for the “GENIUS Act”, ending the debate and starting a 30-hour countdown for the final vote, which can be passed with a simple majority.

Majority Leader John Thune immediately initiated the timing procedure after cloture. Meanwhile, senators are preparing to debate an alternative bill drafted by Senator Bill Hagerty, which removes the previously proposed ban on physical redemptions and clarifies the regulation of non-bank issuers.

After the earlier cloture attempt failed, the Democrats proposed these amendments.

The “GENIUS Act” will require each type of payment stablecoin to maintain a 1:1 backing with high-quality liquid assets (primarily short-term U.S. Treasury securities or insurance deposits) and to separate reserves from operating funds.

If the Senate adopts Senator Bill Hagerty’s amendment and passes the bill, the House may be able to vote on the text without convening a conference committee, which could expedite the enactment of the legislation.