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"Senator Hagerty's GENIUS Act: A New Era for US Stablecoins"

Coin WorldTuesday, Feb 4, 2025 2:23 pm ET

1min read

U.S. Senator Bill Hagerty is set to introduce a bill on Tuesday that aims to establish a comprehensive regulatory framework for stablecoins, aligning with the Republican Party's push for a crypto-friendly environment under President Donald Trump. The bill, dubbed the "Guiding and Establishing National Innovation for US Stablecoins" or GENIUS Act, outlines a regulatory environment for the quickly expanding stablecoin market in the United States.

The GENIUS Act is co-sponsored by Senator Kirsten Gillibrand, Senator Tim Scott, and Senator Cynthia Lummis. 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.

The stablecoin bill comes a few months after Hagerty unveiled draft legislation on the topic in October 2024. This effort aligns with similar proposals pushed in the House of Representatives, including drafts from former House Financial Services Committee chair Patrick McHenry and ranking committee member Rep. Maxine Waters.

The GENIUS Act aims to establish a regulatory framework that positions the U.S. as the "crypto capital of the world." Among its key provisions is a requirement that all stablecoins 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 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.

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