US lawmakers introduce updated GENIUS Act for stablecoin regulation
United States Senator Invoice Hagerty has launched an up to date model of the Guiding and Establishing Nationwide Innovation for US Stablecoins Act forward of a key Senate Banking Committee vote on March 13.
In line with a March 10 announcement, the revised invoice strengthens regulatory requirements for stablecoin issuers, refining guidelines on shopper protections, reserve necessities, and oversight.
One of many largest shifts is its harder stance on non-US stablecoin issuers, imposing what Web3 app founder Dom Kwok, in a March 11 X post, described as “additional excessive requirements” for reserves, liquidity, and compliance checks. This transfer is anticipated to present US-based issuers like Circle and Ripple a “aggressive benefit.”
Nonetheless, whereas the invoice’s core framework stays intact—inserting issuers with over $10 billion in market cap below Federal Reserve supervision and permitting smaller issuers to stay state-regulated—it now consists of stronger enforcement mechanisms and danger controls to make sure compliance and monetary stability.
“Stablecoins allow quicker, cheaper, and aggressive transactions and facilitate seamless cross-border funds. This laws will make sure the business can innovate and develop right here in america whereas selling the U.S. greenback’s international place.”
Tim Scott, chairman of the Senate Banking Committee.
Bipartisan enter performed a key function in shaping the revised invoice, with lawmakers working alongside business stakeholders, teachers, and regulators to fine-tune its provisions, the announcement added.
The Senate Banking Committee is ready to vote on the invoice on March 13. If it clears the committee, it is going to transfer to a full Senate vote, the place lawmakers will debate its provisions earlier than sending it to the Home.
Ought to each chambers approve the laws, it is going to land on President Donald Trump’s desk for ultimate approval or a veto.
As beforehand reported by crypto.information, Hagerty launched the GENIUS Act in February 2025. A key provision within the laws mandates that U.S. Treasury payments, U.S. {dollars}, or Federal Reserve notes should totally again all stablecoins.
In the meantime, the stablecoin market has expanded from a distinct segment sector right into a multi-billion-dollar business lately. In line with a February report from OurNetwork, it now makes up over 1% of the U.S. greenback M2 cash provide.
