#DigitalAssetBill

Senate Majority Leader John Thune initiated a process that expedites a vote on a historic piece of legislation that establishes the first ever regulatory framework for payment stablecoins. The legislation is the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act authored by United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, and cosponsored by Tim Scott (R-SC), Chairman of the Senate Banking Committee, and Cynthia Lummis (R-WY).

Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar. They can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries. The previous Administration’s hostility toward crypto and refusal to provide clear regulatory guidelines has severely stifled stablecoin innovation. This legislation turns a new page.

The GENIUS Act:

Defines a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value;

Establishes clear procedures for institutions seeking licenses to issue stablecoins;

Implements reserve requirements and light-touch, tailored regulatory standards for stablecoin issuers;

For issuers of more than $10 billion of stablecoins, applies the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers;

Allows for state regulation of issuers under $10 billion in issuance and provides a waiver process for issuers exceeding the threshold to remain state-regulated; and

Establishes supervisory, examination, and enforcement regimes with clear limitations.