Senator Bill Hagerty has introduced the GENIUS Act in the Senate, a bill that seeks to regulate stablecoins in the United States. The legislation, officially called the Guiding and Establishing National Innovation for US Stablecoins Act, aims to provide a structured regulatory framework for stablecoin issuers.
Senator Bill Hagerty Introduces Bill to Regulate Stablecoins
According to a recent announcement, Senator Bill Hagerty, a Republican from Tennessee, has introduced legislation to regulate stablecoins. The bill proposes clear guidelines on issuing and managing these digital assets, which are pegged to the US dollar.
The GENIUS Act establishes licensing and reserve requirements for stablecoin issuers. Companies with assets exceeding $10 billion would be regulated by the Federal Reserve, while those with assets below that threshold would follow state-level regulations. The bill also mandates that stablecoin reserves consist of US currency, Treasury bills, and other approved assets.
The legislation outlines strict reporting requirements for stablecoin issuers to ensure transparency. Issuers would be required to submit audited reports every month detailing the reserves backing their stablecoins. False reporting would carry criminal penalties.
Nonbank stablecoin issuers would fall under the supervision of the Office of the Comptroller of the Currency, an independent bureau within the Treasury Department. This measure aims to establish federal oversight while allowing innovation in the crypto industry.
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