Senator Invoice Hagerty and co-sponsors Senators Tim Scott, Cynthia Lummis, and Kirsten Gillibrand have offered an up to date model of the GENIUS Act stablecoin invoice.
First launched in February, the revised bipartisan laws incorporates suggestions from a broad vary of business individuals. It consists of a number of key modifications to enhance and advance the regulatory framework for stablecoins within the US.
GENIUS Act: Newest Updates to Stablecoin Regulation
Senator Hagerty emphasised that robust stablecoin innovation has immense potential. This ranges from bettering transaction effectivity to rising demand for US Treasuries.
“My laws establishes a secure and pro-growth regulatory framework that may unleash innovation and advance the President’s mission to make America the world capital of crypto,” he stated.
Probably the most notable replace is the enlargement “Reciprocity for Cost Stablecoins Issued in Abroad Jurisdictions.” The unique invoice addressed cross-border stablecoin issuance. Nonetheless, the brand new model broadens this part to incorporate particular necessities for abroad stablecoins.
It requires the Secretary of the Treasury to determine reciprocal preparations with nations with comparable regulatory frameworks. These preparations cowl reserve necessities, supervision, anti-money laundering, sanctions compliance, and liquidity requirements.
These purpose to enhance worldwide transactions and interoperability with US dollar-denominated stablecoins. The invoice additionally units a two-year deadline for finishing these agreements.
The up to date GENIUS Act expands the definition of a “Comptroller-regulated entity” to incorporate each Federal certified nonbank fee stablecoin issuers and any group approved by the Comptroller.
Moreover, the invoice consists of new guidelines for issuers about blocking transactions and following authorized orders. The Secretary of the Treasury should work with them earlier than blocking transactions involving the property of a overseas particular person. Nonetheless, the Secretary doesn’t must notify the issuer earlier than taking motion.
The Act additionally requires issuers to have the expertise wanted to observe authorized orders. These issuers should be capable to freeze, seize, or cease the switch of stablecoins if required by legislation. Issuers can’t provide or commerce overseas stablecoins within the US except they meet the Act’s authorized necessities.
“The up to date model of the GENIUS ACT makes important enhancements to various essential provisions, together with client protections, approved stablecoin issuers, danger mitigation, state pathways, insolvency, transparency, and extra,” Senator Gillibrand remarked.
The GENIUS Act’s reintroduction comes amid a broader push for cryptocurrency regulation within the US. On March 13, 2025, at 10:00 a.m. ET, the Senate Committee on Banking, Housing, and City Affairs will maintain an government session to assessment the invoice.
