"GOP Senators Unveil GENIUS Act: A New Era for US Stablecoins"

Republican Senator Bill Hagerty has introduced the GENIUS Act, a bill aimed at establishing a comprehensive regulatory framework for stablecoins in the United States. The legislation, co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, seeks to position the U.S. as the global leader in the crypto market.

The GENIUS Act, or "Guiding and Establishing National Innovation for US Stablecoins," comes a few months after Hagerty first proposed draft legislation on the topic. The bill aligns with similar proposals pushed in the House of Representatives, including those from former House Financial Services Committee chair Patrick McHenry and ranking committee member Rep. Maxine Waters.

The legislation aims to create a regulatory environment for the quickly expanding stablecoin market in the U.S. Tether's (USDT) and Circle's (USDC) are currently the two top stablecoins by market share. The bill requires all stablecoins to be backed by U.S. Treasury bills, U.S. dollars, and Federal Reserve notes. Issuers will also be required to undertake and publish monthly audit reports.

Hagerty confirmed the bill's introduction via a post on X, stating, "Today, I'm introducing the GENIUS Act with Senator Tim Scott, Sen. Gillibrand, & Sen. Lummis, a bill that establishes a clear regulatory framework for stablecoins." The stablecoin bill comes a few months after Hagerty unveiled draft legislation on the topic in October 2024.

Lummis, a key crypto advocate on Capitol Hill, recently became the Senate Banking Subcommittee on Digital Assets' first chair. The Wyoming Senator's pro-crypto voice has included the push for a Bitcoin (BTC) strategic reserve. President Trump signed an executive order that supports the establishment of a U.S. strategic digital assets stockpile, which also outlines the creation of a crypto working group with the task of providing regulatory clarity. Stablecoins form a major part of this framework.

Hagerty has stated that he will work with U.S. House Financial Services Committee chair Rep. French Hill to advance the bill to President Trump's desk. The GENIUS Act is expected to foster a crypto-friendly environment under President Trump's administration, aligning with the GOP's push to promote innovation in the digital asset space.