GENIUS Act: A Bipartisan Step to Enhance National Security and Regulate Stablecoins

U.S. Senate Majority Leader Senator Tim Scott praised the stablecoin legislation known as GENIUS, calling it a "significant bipartisan leap to protect our national security." This legislation aims to precisely regulate the stablecoin market amid its rising use worldwide, whether in legitimate transactions or for illegal purposes.

One of the key provisions of the law requires all stablecoin issuers — whether inside or outside the United States — to register with U.S. federal agencies. It also mandates that these issuers have the technical capability to freeze and seize digital currencies when necessary, a measure that enhances the U.S. tools for enforcing financial sanctions and combating money laundering.

This law is seen as a critical step towards merging financial innovation with national security requirements, balancing the facilitation of technological advancement with ensuring that digital assets are not used in activities that threaten U.S. security or global stability.