#USStablecoinBill The US Stablecoin Bill, also known as the Lummis-Gillibrand Payment Stablecoin Act or the GENIUS Act, aims to establish a regulatory framework for stablecoins in the United States. Here are the key points ¹ ²:
- *Regulatory Framework*: The bill proposes a federal licensing and supervisory framework for payment stablecoins and their issuers, with oversight from the Federal Reserve, Office of the Comptroller of the Currency (OCC), and state banking agencies.
- *Reserve Requirements*: Stablecoin issuers must maintain 1:1 reserves backing their coins with US dollars or high-quality liquid assets like Treasury bills and repurchase agreements.
- *Customer Protection*: The bill imposes customer protection standards on custodial services, including segregation of funds, prohibition on commingling, and monthly audited reports.
- *State vs. Federal Regulation*: Stablecoin issuers with over $10 billion in market capitalization will be subject to federal regulation, while smaller issuers can opt for state regulation with substantially similar standards.
Progress and Challenges
- *Bipartisan Support*: The bill has received bipartisan support, with Senators Bill Hagerty, Kirsten Gillibrand, Tim Scott, and Cynthia Lummis backing the legislation.
- *Democratic Concerns*: However, some Democratic senators have raised concerns about the bill's provisions, citing inadequate safeguards against money laundering and potential conflicts of interest due to Donald Trump's involvement in stablecoin projects.
- *Current Status*: The bill has passed the House Financial Services Committee and awaits a floor vote, with ongoing negotiations to address discrepancies between the GENIUS Act and the STABLE Act ³.$BTC
