"Hagerty's GENIUS Act: Clarifying Stablecoin Regulations for U.S. Crypto Growth"

Senator Bill Hagerty, a Republican from Tennessee, has introduced legislation aimed at establishing regulatory clarity for stablecoins. The bill, titled the Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act, seeks to provide clear regulations for stablecoins, which are digital assets pegged to the U.S. dollar.

The GENIUS Act defines stablecoins as digital assets pegged to the USD and establishes licensing and reserve requirements for issuers. It applies the Federal Reserve's rules for issuers with more than $10 billion in assets and state rules for those with less than $10 billion. The bill also supports financial inclusion, efficient transactions, and dollar supremacy.

Hagerty has been a long-time proponent of regulating the crypto space. In 2022, he pitched the Digital Clarity Act, stating that the current lack of regulatory clarity for digital assets discourages investment and job creation in the U.S. and jeopardizes the country's leadership in transformational technology.

Hagerty's new bill is expected to move quickly through committees in Congress and will be discussed in a press conference with David Sacks. The legislation is an important step toward providing digital asset intermediaries with much-needed certainty and removing barriers to entry currently impeding the growth and liquidity of U.S. cryptocurrency markets.

Hagerty's bill comes as regulators have scrutinized the quality of assets backing stablecoins, including Tether's USDT token, amid concerns over liquidity and the ability to meet mass redemption requests under market stress. The bill seeks to provide regulatory clarity for stablecoins, which are tokens pegged to the U.S. dollar and other real-world assets. Proponents argue that federal oversight would enhance credibility and promote broader adoption of stablecoins within the financial system.

Hagerty said, "My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President's mission to make America the world capital of crypto." Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis are co-sponsoring the bill. The initiative represents a continued effort among Republican lawmakers to create guidelines for the crypto industry, a sector that President Donald Trump has prioritized.

The Office of the Comptroller of the Currency, an independent bureau within the Treasury Department, would regulate and supervise non