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Senator Bill Hagerty introduced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, aiming to regulate US dollar-pegged crypto tokens.
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US Senator Bill Hagerty has introduced a bill to create a regulatory framework for stablecoins that would bring tokens such as Tether and USD Coin under Federal Reserve rules.
The Tennesse Republican said in a Feb. 4 statement that the stablecoin bill would create “a safe and pro-growth regulatory framework that will unleash innovation” and advance President Donald Trump’s pledge to make the US the “world capital of crypto.”
Hagerty’s “Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act” received support from Senators Tim Scott, Kirsten Gillibrand and Cynthia Lummis.
Hagerty added on X that he is looking forward to working with Representative French Hill and the House Financial Services Committee to “get it to the president’s desk and signed into law.”
Statement from Senator Cynthia Lummis. Source: Cynthia Lummis
Hagerty’s stablecoin bill builds on the discussion draft he submitted for former Representative Patrick McHenry’s Clarity for Payment Stablecoins Act in October.
The GENIUS stablecoin bill defines stablecoins as digital assets pegged to the US dollar and proposes that issuers with market caps above $10 billion comply with Federal Reserve regulations, while issuers below that threshold would be regulated by the states.
Tether (USDT) and Circle’s USD Coin (USDC) are the only two stablecoins with market caps currently above $10 billion, CoinGecko data shows.
Stablecoin issuers would also have to provide audited reserve reports every month, with submitting false information possibly leading to criminal penalties.
FOX Business reporter Eleanor Terrett said on X that Senate staffers “expect the bill to move quickly through committees in Congress.”
Related: Inside Trump’s crypto agenda: Memecoins, SEC task force and Bitcoin reserve plans
At a Feb. 4 press conference, White House’s AI and crypto czar David Sacks showed real intent to help pass stablecoin legislation in the coming months
“Stablecoins have the potential to ensure American dollar dominance internationally to increase the usage of the US dollar digitally as the world’s reserve currency and in the process create potentially trillions of dollars of demand for the US Treasury.”
The total stablecoin market cap sits at $227 billion, a sum that crypto asset manager Bitwise expects to increase to $400 billion by the end of this year.
Magazine: How crypto laws are changing across the world in 2025
This article first appeared at Cointelegraph.com News
