The US Stable Coin Bill, officially known as the GENIUS Act, aims to establish a clear regulatory framework for payment stablecoins. This bipartisan effort seeks to provide consumer protection and maintain the US dollar's dominance in the digital asset space. Key provisions include mandating 1:1 reserve backing with liquid assets and implementing federal oversight for issuers with over $10 billion in outstanding stablecoins, while allowing state regulation for smaller issuers meeting federal standards.
However, the bill faces headwinds. Some Democrats express concerns over insufficient safeguards for anti-money laundering, national security, and consumer protection. They argue the current version lacks robust measures against illicit finance and could potentially destabilize the financial system by allowing non-banks to issue stablecoins without stringent capital and liquidity requirements similar to traditional banks. The debate continues as lawmakers strive to balance innovation with necessary safeguards.
