In 2023, the United States took an important step in stablecoin regulation. On March 13, local time, the U.S. Senate Banking Committee passed the 'Guidance and Establishment of the U.S. Stablecoin National Innovation Act' (the 'GENIUS Act') with a vote of 18 to 6, marking an important beginning for the bill toward becoming law. This legislation will regulate U.S. stablecoin issuers at the federal level. The bill focuses on payment stablecoins, aiming to create a clear regulatory framework to ensure transparency, accountability, and consumer protection, and to promote their regulated use in the digital economy.

The bill clearly defines payment stablecoins, which must be denominated in national currency, with issuers promising to redeem at a fixed amount, and are not classified as national currency or investment company securities. Issuance qualifications are strictly limited to approved subsidiaries of insured deposit institutions and federally or state-certified non-bank payment stablecoin issuers. Issuers must hold 100% reserve assets, covering U.S. dollars in cash, deposits at Federal Reserve Banks, and short-term U.S. Treasury securities, among others. They must publish monthly reports on reserve composition, subject to independent auditing by accounting firms, with written certification by the CEO and CFO. In terms of custodianship, only federally or state-regulated financial institutions may provide services, with client assets prioritized and prohibited from being included in the issuer's balance sheet. Regulatory violations will face consequences such as disqualification, cease and desist orders, civil fines, and even criminal penalties.