"US Lawmakers to Propose Crypto Regulation by November: Hagerty's GENIUS Act Aims to Stabilize Stablecoins"

US lawmakers are set to propose crypto regulation by November, according to Anthony Scaramucci, a former White House communications director. This move comes as part of a broader effort to establish a clear regulatory framework for the cryptocurrency industry in the United States.

Senator Bill Hagerty has been at the forefront of this push, intending to introduce legislation on February 4 to establish a regulatory framework for stablecoins. The bill, dubbed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, will outline provisions for issuing stablecoin payments and mandate that they be backed by US currency, Federal Reserve notes, Treasury bills, or other assets. The bill will also require stablecoin issuers to submit monthly audited reports on their reserves, with false reporting resulting in criminal penalties.

Regulators have been scrutinizing 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 GENIUS Act seeks to provide regulatory clarity for stablecoins, which are tokens pegged to the US 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 nonbank stablecoin issuers. Trump has committed to fostering the crypto industry by reducing regulatory barriers and appointing crypto-friendly regulators. On his first week in office, he signed an executive order to create a crypto working group, halt developments regarding a US central bank digital currency, and assess and potentially establish a digital asset stockpile.

However, while the order established a working group to propose a regulatory framework for digital assets, any substantive policy changes would require congressional approval. Both major parties have signaled an interest in addressing stablecoin regulation. Notably, the legal framework could spur growth in the stagnated US stable