The U.S. Senate has passed the Genius Act, granting stablecoin holders priority claims to their backing assets in bankruptcy scenarios. This legislative move is raising concerns about its potential impact on traditional bank customers. Critics, including Georgetown University law professor Adam Levitin, argue that this could subsidize stablecoin issuance at the expense of bank depositors, potentially eroding their rights if a stablecoin issuer or its custodian bank fails. The bill mandates that stablecoins be backed by highly liquid assets, such as U.S. Treasuries, with issuers required to disclose reserves monthly and have the capability to freeze tokens. While the act aims to bolster user confidence and integrate stablecoins more closely with the financial system, its bankruptcy priority provision has sparked debate over regulatory implications and financial stability.