Fidelity Investments is launching the Fidelity Digital Dollar (FIDD), a stablecoin based on Ethereum, to cater to both institutional and retail users. It will be backed by cash and U.S. Treasuries, adhering to the new GENIUS Act's reserve rules, and aims to facilitate 24/7 settlements and on-chain payments.

The Senate passed the GENIUS Act, establishing federal regulations for U.S. dollar-pegged stablecoins and allowing private companies to issue digital dollars with government approval. While the bill faces challenges in the House, it represents a significant step for the crypto industry, which has heavily invested in pro-crypto lawmakers. Critics argue the legislation benefits President Trump's crypto ventures, as it does not prevent elected officials from profiting off digital assets.

The U.S. Senate has passed the GENIUS Act to regulate stablecoins, marking a significant step in federal cryptocurrency legislation. With bipartisan support, the bill aims to set a framework for dollar-pegged crypto tokens, requiring them to be fully backed by U.S. dollars and mandating audits for larger issuers. The focus now shifts to the House of Representatives, which will decide whether to adopt the Senate's bill or pursue its own legislation.