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- US Senate to vote on GENIUS Act, regulating stablecoins like USDC and Tether under Federal Reserve oversight.
- Bipartisan bill strengthens consumer protections, targets issuers over $10B, and sets high standards for foreign stablecoins.
- If passed, the GENIUS Act could give US-issued stablecoins a competitive edge in the global market.
The US Senate Banking Committee will vote on the GENIUS Act on March 13. The bill, sponsored by both Democrats and Republicans, addresses the lack of regulation in the use of stable coins. Republican Senator Bill Hagerty has proposed the bill to set legal requirements for stablecoin issuers like Tether and Circle’s USD Coin.
On March 10, GOP Senator Bill Hagerty, a co-sponsor of the bill, unveiled a new version of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill has been assigned the Banking Committee to vote on the 13th of March. .The bill targets stablecoin issuers involved in operations with an asset market value of over $10 billion and seeks to regulate them under the Federal Reserve.
Democratic Senator Kirsten Gillibrand expressed her appreciation of the improvements brought about by the bill on consumer protection and disclosure. She said this has been done in the current update especially under risk management and insolvency management. Currently the bill has attracted support from the Congress Republicans Senators Cynthia Lummis and Tim Scott and from Democrat Angela Alsobrooks.
US Stablecoins Dominate Market
Kwok Dom of EasyA, Company co-founder, Web3 app stated that the bill added other important degrees of regulation, especially for the foreign issuers. He added that such activities as reserve requirements, liquidity rules and the workouts for anti-money laundering could be challenging for many of the participants from different countries.
Such measures may also increase chances of existence of USDC and Ripple USD (RLUSD) in circulation in the world market, as stated by Kwok. Lawyer Jeremy Hogan on X shared the same opinion and added that all requirements made by the bill potentially correspond to the stablecoins, issued in the USA.
However, the GENIUS Act is not yet complete with its journey through the Congress as it is still in the process at the moment. That makes it possible for after passing through the Senate Banking Committee it to be taken for a ruling on the floor of the Senate where more amendments may be made.
If it passes the Senate, it will head to the House, the next step will be for the bill to go back to President Donald Trump for his signature or the veto. The proposed legislation will be a welcome direction for the market of stablecoins, which unites innovation with consumer protection and national security.
