#USStablecoinBill The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, is a bipartisan U.S. Senate bill aimed at establishing the first comprehensive federal regulatory framework for stablecoins. Introduced by Senators Bill Hagerty (R-TN) and Kirsten Gillibrand (D-NY), the bill has garnered significant attention due to its potential impact on the cryptocurrency industry and its association with former President Donald Trump's family business interests.
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Key Provisions of the GENIUS Act
Issuance Requirements: Only "permitted payment stablecoin issuers" can issue payment stablecoins, which must be fully backed on a 1:1 basis with U.S. dollars or other approved high-quality liquid assets like Treasury bills.
Reserve Management: Issuers are required to segregate reserves from operational funds, avoid rehypothecation, and undergo monthly certifications to attest to the sufficiency of reserves.
State vs. Federal Oversight: Stablecoin issuers with a market capitalization of $10 billion or less may opt for state-level regulation, provided the state's regulatory regime is "substantially similar" to the federal framework. Larger issuers must transition to federal oversight within 360 days of reaching the threshold.
Consumer Protections: The bill mandates compliance with anti-money laundering laws and includes provisions to protect consumers and maintain the stability of the financial system.
Legislative Progress and Political Dynamics
Senate Banking Committee Approval: On March 13, 2025, the GENIUS Act was approved by the Senate Banking Committee with an 18-6 vote, indicating strong bipartisan support.
Senate Floor Consideration: The bill is now set to be considered by the full Senate. However, recent developments have introduced challenges. A group of nine Senate Democrats, previously supportive, have withdrawn their backing, citing concerns over insufficient safeguards against money laundering and financial system risks.#USDC
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