The Senate Banking Committee is set to vote on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act this Thursday. The updated legislation was introduced by Chairman Tim Scott (R-S.C.) alongside Senators Bill Hagerty (R-Tenn.), Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Angela Alsobrooks (D-Md.). The bill aims to create a clear regulatory framework for payment stablecoins.
Chairman Scott highlighted the bipartisan nature of the proposal, stating, "President Trump and the American people gave Congress a mandate to advance legislation to provide clarity for the digital assets industry, including stablecoins." He emphasized that the agreement would protect consumers while expanding financial inclusion across the United States.
Senator Hagerty remarked on the potential benefits of stablecoin innovation, saying, "From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense." He expressed his intention to collaborate with Chairman French Hill and the House Financial Services Committee to push the legislation forward.
Senator Gillibrand noted improvements in several key areas within the updated version of the GENIUS Act. She stated, "This bill represents a true bipartisan effort," expressing confidence that it would foster innovation and maintain U.S. dollar dominance.
Senator Lummis underlined the importance of creating a regulatory framework for stablecoins as crucial for maintaining U.S. leadership in digital assets. "Senator Hagerty and my bill secures stablecoin issuers’ ability to choose between state and national charters," she explained.
Lastly, Senator Alsobrooks described the GENIUS Act as a foundational step in regulating stablecoins within the broader cryptocurrency landscape. She emphasized Maryland's role in protecting consumers and fostering innovation domestically.
The GENIUS Act defines payment stablecoins as digital assets pegged to a fixed monetary value used for payments or settlements. It outlines procedures for licensing institutions issuing stablecoins, sets reserve requirements, and establishes regulatory standards tailored for issuers based on market capitalization thresholds. Additionally, it provides state regulation options and supervisory regimes with defined limitations.