Austin Campbell, an adjunct professor at New York University's Stern School of Business, expressed his support for the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. He described the act as "excellent" and suggested it could be passed as written. Campbell shared his views with Federal Newswire on February 10.
"Hagerty's bill is excellent," said Campbell. "Solid reserve framework, bankruptcy remote for trusts, allows bank and non-bank issuers, sensible threshold for Federal vs. state regulation. There are small tweaks one could make but passing this as-is would be exceptional."
Stablecoins are cryptocurrencies that maintain a stable value by being pegged to a fiat currency such as the U.S. dollar (USD). According to NFX, approximately 99% of stablecoin projects are currently pegged to the USD.
On February 5, U.S. Senator Bill Hagerty introduced the GENIUS Act alongside Senate Banking Committee Chair Tim Scott, Senator Cynthia Lummis, and Senator Kirsten Gillibrand. The legislation aims to establish a regulatory framework for payment stablecoins. It defines stablecoins, sets procedures for issuers to obtain licenses, implements reserve requirements, and "establishes supervisory, examination, and enforcement regimes with clear limitations."
According to a press release, the previous administration's lack of regulatory clarity negatively impacted stablecoin innovation in the United States. Stablecoins have the potential to expand financial inclusion, strengthen the USD's position as the global reserve currency, and enhance transaction efficiency. Hagerty said that the GENIUS Act "establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto."
Campbell also serves as CEO of the payments network WSPN and is a managing partner at Zero Knowledge Consulting.