Catenaa, Wednesdy, March 12, 2025-The US Senate Banking Committee is set to vote this week on a bipartisan stablecoin regulation bill, the GENIUS Act, which aims to enhance consumer protection and clarify the regulatory framework for stablecoins.
Introduced by Senators Bill Hagerty (R-TN) and Tim Scott (R-SC), the bill includes provisions on reserve requirements, audits, transparency, and licensing for stablecoin issuers.
The bill -Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS)- seeks to provide a clearer path for stablecoin issuers in the US, while advancing President Donald Trump’s crypto policies.
If passed, it could stimulate innovation within the industry and bring regulatory clarity. Senator Hagerty highlighted the potential benefits of stablecoin innovation, including improved transaction efficiency and the demand for US Treasuries.
One key aspect of the bill is its approach to foreign-issued stablecoins, requiring them to comply with US standards. This could give an advantage to U.S.-domiciled stablecoin issuers, such as Circle’s USDC and Ripple’s RLUSD, over competitors like Tether. The bill also proposes giving US authorities more control over digital assets, including the power to seize, freeze, or prevent transfers of stablecoins.
The Senate Banking Committee will tomorrow March 13 on the revised GENIUS Act, which sets federal rules for stablecoin issuers over $10B and allows state oversight for smaller ones.
The bill’s progress could reshape the stablecoin landscape, as issuers may face new challenges in meeting compliance standards.
Tether, for instance, may struggle to align with the bill’s reserve requirements, possibly affecting its peg to the US dollar. The crypto industry is closely watching for potential impacts on global stablecoin operations.
