#GENIUSActPass

The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins Act, has been introduced in the US Senate to establish a regulatory framework for stablecoins. Here's the latest on its progress ¹ ²:

- *Introduction*: The GENIUS Act was introduced on February 4, 2025, by Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, and Cynthia Lummis.

- *Bipartisan Support*: The bill has received bipartisan support, which could help it move quickly through Congress.

- *Regulatory Framework*: The act proposes a licensing and supervisory framework for payment stablecoins and their issuers, including requirements for reserve backing, consumer protection, and regulatory oversight.

- *Key Provisions* ³ ²:

- *Permitted Payment Stablecoin Issuers*: Only permitted issuers, such as subsidiaries of insured depository institutions or federal qualified nonbank payment stablecoin issuers, can issue payment stablecoins in the US.

- *Reserve Requirements*: Issuers must maintain reserves backed by tangible, liquid assets like US Treasury bills or cash deposits, with a 1-to-1 reserve backing.

- *Regulatory Oversight*: The Federal Reserve will oversee issuers with over $10 billion in circulation, while smaller issuers can operate under state regulations.

- *Consumer Protection*: Issuers must submit monthly audited reports and face criminal penalties for false reporting.

- *Progress*: The bill is expected to move forward swiftly, with Senate Banking Committee Chairman Tim Scott expressing confidence that it will pass within President Trump's first 100 days in office.

- *Companion Bill*: A companion bill, the STABLE Act, has been introduced in the House of Representatives, which shares similarities with the GENIUS Act but has some differences.