Senator Bill Hagerty Introduces GENIUS Act To Regulate U.S. Stablecoin Market
- Senator Hagerty’s GENIUS Act proposes strict monthly audits for stablecoin issuers.
- The U.S. stablecoin market reached $205 billion by 2024, dominating global crypto flows.
- GENIUS Act separates federal and state oversight for stablecoin issuers $10 billion.
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.
Through this legislation, Congress seeks to clarify crypto regulations for stablecoins while supporting innovative growth in the growing cryptocurrency market.
Key Provisions of the GENIUS Act
The GENIUS Act contains multiple essential provisions dedicated to strengthening the transparency and security aspects of the market. According to the legislation, stablecoin issuers should back up their tokens with U.S. dollars, Federal Reserve notes, Treasury bills, or other stable assets. The bill requires monthly audited reports about reserves from stablecoin issuers while providing criminal sanctions to anyone reporting false data.
The regulations create standards to maintain secure and dependable stablecoins necessary for their broad adoption. Additionally, the new legislation differentiates oversight between state and federal. The Office of the Comptroller of the Currency (OCC) regulates issuers with over $10 billion in assets, but issuers with lower asset amounts remain within state regulatory systems.
The regulatory division resolves obstacles that blocked previous stablecoin legislation since negotiations between these bodies stalled progress.
Support from Key Lawmakers and Industry Stakeholders
The bill has received support from federal lawmakers like Senators Kirsten Gillibrand (D-N.Y.), Tim Scott (R-S.C.), and Cynthia Lummis (R-Wyo.), who are the co-sponsors. The regulatory initiatives continue to gather widespread support from both sides of the political spectrum, demonstrating increasing national interest in providing a clear framework for stablecoin operations.
Recent years have witnessed rapid adoption of stablecoins pegged to stable assets like the U.S. dollar. The global stablecoin market value rose to over $205 billion at the end of 2024, with Tether (USDT) and Circle (USDC) dominating the market. However, concerns about the stability of assets led authorities to ask for stronger regulatory control to ensure token reliability.
Members of Congress, especially Republicans, now champion the GENIUS Act as a new measure to establish regulatory guidelines for expanding cryptocurrency markets. Notably, since President Trump supports minimal cryptocurrency regulation he has become a key force behind lawmakers who are creating legislation that harmonizes regulatory oversight with industry innovation. This bill indicates a new direction for Congressional crypto policy while the United States attempts to recover its leadership position in worldwide digital cryptocurrency markets.
