Senator Hagerty Introduces GENIUS Act to Potentially Regulate Tether and USD Coin in Stablecoin Framework
The post Senator Hagerty Introduces GENIUS Act to Potentially Regulate Tether and USD Coin in Stablecoin Framework appeared on BitcoinEthereumNews.com.
US Senator Bill Hagerty’s introduction of the GENIUS Act signals a major regulatory shift for payment stablecoins, aiming to solidify the US dollar’s global dominance. The legislation seeks to not only regulate stablecoin issuers but also to foster innovation within the cryptocurrency sector by providing a clear framework. According to Senator Hagerty, “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.” Senator Hagerty’s GENIUS Act aims to provide a robust regulatory framework for stablecoins, promoting innovation and ensuring the US dollar’s dominance in the crypto space. Senator Hagerty Pushes the Stablecoin Bill in the Senate The GENIUS Act defines a payment stablecoin as a digital asset meant for payments or settlements, pegged to a fixed monetary value. Under this legislation, stablecoin payments must be backed by US currency, demand deposits at insured institutions, Treasury bills, or other approved assets. Additionally, the Act stipulates that the Federal Reserve will oversee stablecoin issuers with a market value exceeding $10 billion, adapting bank regulation practices. In contrast, nonbank issuers will come under the regulation of the Office of the Comptroller of the Currency. Issuers with market valuations under $10 billion will be regulated at the state level; however, those surpassing this figure can seek state-regulation exemptions. Currently, only Tether (USDT) and USD Coin (USDC) exceed the $10 billion market cap threshold. The Act mandates monthly audited reports on stablecoin reserves and imposes penalties for false reporting. Its framework outlines specific procedures for institutions looking to obtain licenses for stablecoin issuance. Moreover, it sets reserve requirements, prescribes regulatory standards, and establishes supervisory mechanisms including examination and enforcement procedures. Senator Hagerty has underlined that the potential benefits of such stablecoin innovation could significantly improve transaction efficiency and thereby…
Filed under: News - @ February 5, 2025 5:14 am