Just In: Senator Hagerty Introduces GENIUS Act to Regulate Stablecoins

In a latest development, FOX Business journalist Eleanor Terrett revealed in an X post that Senator Hagerty has introduced his stablecoin bill in the Senate. The bill is called the $GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act and aims to provide clear regulations for stablecoins.

She also shared the highlights of the bill which is based on a discussion draft Hagerty rolled out in October-

Stablecoin Regulation: The bill establishes clear regulations for stablecoins, which are digital assets pegged to the U.S. dollar (USD). This gives more clarity to the market. It defines stablecoins as digital currencies tied to the value of the USD, ensuring they maintain stability in value.

Licensing and Reserve Requirements: Issuers of stablecoins will have to meet specific licensing and reserve requirements, ensuring that they have enough reserves to back the stablecoins they issue.

Different Rules Based on Size: The bill applies stricter Federal Reserve rules to issuers with over $10 billion in stablecoin assets, while issuers with less than $10 billion will follow state-level regulations.

Benefits for the Economy: The bill aims to support financial inclusion by making transactions more efficient and promoting the U.S. dollar’s global dominance.

Senate staffers expect the bill to move through committees quickly, and it will be discussed further in an upcoming press conference with DavidSacks.