In 2023, the United States took significant steps in stablecoin regulation. On March 13, 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 start for the bill towards becoming law. The bill will regulate U.S. stablecoin issuers at the federal level. This legislation focuses on payment stablecoins, aiming to build a clear regulatory framework that ensures transparency, accountability, and consumer rights, while promoting their standardized application in the digital economy.

The bill explicitly defines payment stablecoins, stating they must be denominated in national currency, with issuers promising to exchange at a fixed amount, and they do not qualify as national currency or securities of investment companies. Issuance eligibility is 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, including U.S. dollar cash, deposits at Federal Reserve banks, and short-term U.S. Treasury securities. They are required to publish monthly reserve composition reports, audited by an independent accounting firm, with written certification from the CEO and CFO. Only financial institutions regulated by federal or state authorities can provide custodial services, with client assets prioritized and prohibited from being included on the issuer's balance sheet. Regulatory violations may result in suspension of eligibility, cease-and-desist orders, civil penalties, or even criminal prosecution.