Senate Banking Committee Chairman Tim Scott (R-S.C.) has published an op-ed in the Washington Examiner, discussing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation aims to create a regulatory framework for payment stablecoins. The bill, led by Senator Bill Hagerty (R-Tenn.) and co-sponsored by Scott along with Senators Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Angela Alsobrooks (D-Md.), advanced out of the Senate Banking Committee during its first markup of the 119th Congress with support from all Republicans and five Democrats.
Scott noted his travels across the country with President Donald Trump last year before the 2024 election, where he observed public demand for access to digital assets. Trump had pledged to position the United States as a leader in cryptocurrency. According to Scott, "voters called for a new approach that onshored innovation to the U.S." after what he described as four years of resistance from former President Joe Biden's administration.
The GENIUS Act seeks to provide clear guidelines for stablecoins, which are digital currencies designed to maintain a stable value against traditional currencies like the U.S. dollar. Scott emphasized that these coins enable faster, cheaper transactions and could enhance financial inclusion across America.
As chairman of the Senate Banking Committee, Scott prioritized digital assets by creating the Senate’s first Subcommittee on Digital Assets. He expressed confidence that passing this legislation would encourage innovation in the U.S., protect consumers, bolster national security, and expand financial inclusion.
Scott described the GENIUS Act as primarily focused on consumer protection: "Payment stablecoins are already offered in the U.S. with little regulatory oversight," he said. The bill aims to ensure these coins adhere to protections such as reserve requirements and capital standards.
While some opponents have raised concerns about potential impacts on illicit finance, Scott argued that cracking down on bad actors is a priority for him and asserted that "the GENIUS Act would bolster U.S. national security."
In conclusion, Scott praised bipartisan efforts leading up to this legislative proposal: "This legislation is the product of a true bipartisan agreement... It's past time we get this bill to Trump's desk."
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