#USStablecoinBill

The GENIUS Act, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, is a bipartisan United States Senate bill that aims to establish 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 interest due to its potential to define the cryptocurrency arena and its connection with former President Donald Trump's family business dealings.

Politico

Key Provisions of the GENIUS Act

Issuance Requirements: Stablecoins denominated in payment can be issued only by "permitted payment stablecoin issuers" as full reserve backing 1:1 against U.S. dollars or other high-quality liquid assets like Treasury bills.

Reserve Management: Issuers have to hold separate reserves from operating cash, ban rehypothecation, and provide monthly certifications ensuring adequate reserves.

State vs. Federal Regulation: Stablecoin issuers whose market capitalization is less than $10 billion can choose to be regulated at the state level, subject to the state regulatory regime being "substantially similar" to the federal system. Bigger issuers will have to shift to federal regulation within 360 days of crossing the threshold.

Consumer Protections: The bill entails anti-money laundering law compliance and includes provisions aimed at protecting consumers and maintaining the stability of financial systems.

Legislative Progress and Political Dynamics

Senate Banking Committee Approval: On March 13, 2025, the Senate Banking Committee voted by 18-6 to endorse the GENIUS Act in an expression of strong bipartisan backing.

Senate Floor Consideration: The bill is now set to be considered on the full Senate. But recent developments have created difficulties. Nine Senate Democrats, who had been backers, have withdrawn their support, citing concerns about insufficient protections against money laundering and financial system risk.