The post Updated GENIUS Act Proposes New Regulations for Stablecoins and Overseas Transactions appeared on BitcoinEthereumNews.com.

The revised GENIUS Act aims to enhance the regulatory landscape for stablecoins, focusing on overseas regulations and cross-border transactions. This updated legislation introduces stringent compliance measures, mandating that stablecoin issuers adhere to legal orders regarding assets, including foreign stablecoins. According to Senator Gillibrand, “The updated version of the GENIUS ACT makes significant improvements to important provisions, including consumer protections and authorized stablecoin issuers.” The GENIUS Act’s revisions bolster US stablecoin regulation, enhancing compliance for issuers and promoting safer cross-border transactions. GENIUS Act: Latest Updates to Stablecoin Regulation Senator Hagerty emphasized that strong stablecoin innovation has immense potential, impacting transaction efficiency and increasing the demand for US Treasuries. “My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto,” he said. The most notable update is the expansion of “Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions.” This legislation now includes specific requirements tailored for overseas stablecoins, addressing previously identified gaps. It mandates that the Secretary of the Treasury establish reciprocal arrangements with countries that have corresponding regulatory frameworks, covering aspects such as reserve requirements, supervision, anti-money laundering, sanctions compliance, and liquidity standards. These measures aim to enhance international transactions and improve interoperability with US dollar-denominated stablecoins, with a two-year deadline set for the completion of these arrangements. The revised GENIUS Act also expands the definition of a “Comptroller-regulated entity” to encompass both Federal qualified nonbank payment stablecoin issuers and any entity authorized by the Comptroller. Additionally, the legislation includes new rules requiring issuers to manage transactions that may be blocked and to comply with legal orders. The Secretary of the Treasury will collaborate with issuers prior to blocking transactions involving foreign property, albeit without a prior notification requirement. Issuers must also possess technology capable of…

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Filed under: News - @ March 11, 2025 6:19 am