Senator Invoice Hagerty and co-sponsors Senators Tim Scott, Cynthia Lummis, and Kirsten Gillibrand have introduced an up to date model of the GENIUS Act stablecoin invoice.
First launched in February, the revised bipartisan laws incorporates suggestions from a broad vary of business members. It consists of a number of key modifications to enhance and advance the regulatory framework for stablecoins within the US.
GENIUS Act: Newest Updates to Stablecoin Regulation
Senator Hagerty emphasised that sturdy stablecoin innovation has immense potential. This ranges from bettering transaction effectivity to rising demand for US Treasuries.
“My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto,” he mentioned.
Probably the most notable replace is the enlargement “Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions.” The unique invoice addressed cross-border stablecoin issuance. Nonetheless, the brand new model broadens this part to incorporate particular necessities for abroad stablecoins.
It requires the Secretary of the Treasury to ascertain reciprocal preparations with international locations with related regulatory frameworks. These preparations cowl reserve necessities, supervision, anti-money laundering, sanctions compliance, and liquidity requirements.
These goal to enhance worldwide transactions and interoperability with US dollar-denominated stablecoins. The invoice additionally units a two-year deadline for finishing these agreements.
The up to date GENIUS Act expands the definition of a “Comptroller-regulated entity” to incorporate each Federal certified nonbank cost stablecoin issuers and any group licensed by the Comptroller.
Moreover, the invoice consists of new guidelines for issuers about blocking transactions and following authorized orders. The Secretary of the Treasury should work with them earlier than blocking transactions involving the property of a international individual. Nonetheless, the Secretary doesn’t have to notify the issuer earlier than taking motion.
The Act additionally requires issuers to have the know-how wanted to comply with authorized orders. These issuers should have the ability to freeze, seize, or cease the switch of stablecoins if required by legislation. Issuers can not supply or commerce international stablecoins within the US except they meet the Act’s authorized necessities.
“The updated version of the GENIUS ACT makes significant improvements to a number of important provisions, including consumer protections, authorized stablecoin issuers, risk mitigation, state pathways, insolvency, transparency, and more,” Senator Gillibrand remarked.
The GENIUS Act’s reintroduction comes amid a broader push for cryptocurrency regulation within the US. On March 13, 2025, at 10:00 a.m. ET, the Senate Committee on Banking, Housing, and City Affairs will maintain an government session to evaluate the invoice.
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