Stablecoin regulation in the U.S. takes center stage as Senator Hagerty unveils new bill
Stablecoin regulation in the U.S. takes center stage
Senator Bill Hagerty (R-TN) has introduced the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), a bill aimed at creating a structured regulatory framework for stablecoin issuers in the United States.
The move signals growing efforts in Washington to bring stability and transparency to the rapidly expanding digital asset market, according to Coingape.
Federal and state oversight for stablecoin issuers
The proposed legislation would require stablecoin issuers to adhere to strict licensing and reserve standards. Companies with assets exceeding $10 billion would be regulated by the Federal Reserve, while those below that threshold would follow state-level regulations.
The bill mandates that stablecoin reserves consist only of U.S. currency, Treasury bills, and other approved assets, ensuring the stability of these digital tokens.
In a bid to improve transparency, the GENIUS Act would require stablecoin issuers to submit monthly audited reports detailing the reserves backing their digital assets. False reporting would carry criminal penalties, underscoring the bill’s commitment to accountability.
For nonbank stablecoin issuers, the bill places oversight under the Office of the Comptroller of the Currency (OCC), a Treasury Department bureau, aiming to provide federal supervision while encouraging innovation.
“The goal is to establish a clear, commonsense regulatory framework that protects consumers while allowing for continued growth in the digital asset space,” Hagerty said in a statement.
As Congress grapples with the complexities of digital finance, the GENIUS Act marks a pivotal step in defining the future of stablecoins in the U.S. The bill now faces legislative scrutiny as policymakers weigh its potential impact on the financial system and cryptocurrency industry.
Meanwhile, Senator Ted Cruz is championing Texas as a global hub for Bitcoin innovation, aligning the state’s resources with the growing digital asset industry. With three Bitcoin mining facilities in West Texas, Cruz is merging advocacy with action.
