Senator Bill Hagerty Introduces GENIUS Act To Regulate U.S. Stablecoin Market

U.S. Senator Bill Hagerty of Tennessee intends to launch a new legislative proposal to regulate stablecoins in the United States. Known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, the bill represents a legislative initiative allowing stablecoin issuers to receive a comprehensive framework on how these assets should be backed and monitored.

Tennessee U.S. Senator Bill Hagerty intends to introduce a new legislative proposal to regulate stablecoins in the United States.

The bill, titled the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is a legislative initiative that would provide stablecoin issuers with a comprehensive framework on how the assets should be backed and overseen.

With the legislation, Congress aims to clarify crypto regulations for stablecoins and support innovative growth in the expanding cryptocurrency market.

Key Provisions of the GENIUS Act

The GENIUS Act includes several key provisions that aim to enhance the transparency and security of the market.

The bill outlines that stablecoin issuers should back their tokens with U.S. dollars, Federal Reserve notes, Treasury bills, or other stable assets.

The bill requires stablecoin issuers to provide monthly audited reports on their reserves and outlines criminal sanctions for anyone who knowingly reports false data.

The regulations establish standards to maintain secure and reliable stablecoins that are necessary for their broad adoption.

Moreover, the new legislation divides oversight between state and federal regulators.

The Office of the Comptroller of the Currency (OCC) would regulate issuers with over $10 billion in assets, while issuers with lower asset amounts would remain within state regulatory systems.

The regulatory division resolves a roadblock that stalled previous stablecoin legislation, as negotiations between the agencies hindered progress.

Support from Key Lawmakers and Industry Stakeholders

The bill is supported by federal lawmakers who are co-sponsoring the bill, including Senators Kirsten Gillibrand (D-N.Y.), Tim Scott (R-S.C.), and Cynthia Lummis (R-Wyo.).

The regulatory initiative continues to garner widespread support from both sides of the political spectrum, highlighting the increasing national interest in providing a clear framework for stablecoin operations.

Today, I’m introducing the GENIUS Act w/ @SenatorTimScott, @SenGillibrand, & @SenLummis, a bill that establishes a clear regulatory framework for stablecoins.

I look forward to working with @RepFrenchHill and @FinancialCmte to get it to the President’s desk and signed into law.