United States Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, and Cynthia Lummis have introduced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation aims to create a regulatory framework for payment stablecoins.
Senator Hagerty emphasized the potential benefits of stablecoin innovation, stating that it could enhance transaction efficiency and drive demand for U.S. Treasuries. He expressed his commitment to working with Chairman French Hill and the House Financial Services Committee to advance the legislation.
Chairman Scott highlighted that stablecoins enable faster and cheaper transactions in the digital world, facilitating cross-border payments. He noted that the legislation would expand financial inclusion while protecting consumers and promoting the U.S. dollar's global position.
Senator Gillibrand pointed out that passing clear regulations for stablecoins is essential for maintaining U.S. dollar dominance and protecting consumers. She mentioned that the bipartisan GENIUS Act requires stablecoin issuers to maintain one-to-one reserves and comply with anti-money-laundering rules.
Senator Lummis supported the legislation, emphasizing its importance in maintaining U.S. dollar dominance and promoting responsible financial innovation.
The GENIUS Act defines a payment stablecoin as a digital asset pegged to a fixed monetary value and establishes procedures for institutions seeking licenses to issue stablecoins. It also sets reserve requirements and regulatory standards for issuers, allowing state regulation under certain conditions.
The full text of the GENIUS Act is available online.
