Washington, D.C.— Senate Banking Subcommittee on Digital Assets Chair Cynthia Lummis (R-WY) joined U.S. Senator Bill Hagerty (R-TN), Sen. Kirsten Gillibrand (D-NY) and Senate Banking Committee Chair Sen. Tim Scott (R-SC) in introducing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to establish a clear regulatory framework for payment stablecoins.
“Creating a bipartisan regulatory framework for stablecoins is critical to maintaining the U.S.’s dollar dominance and promoting responsible financial innovation,” said Lummis. “I’m proud to support Sen. Hagerty’s important legislation, which goes a long way towards protecting Wyoming’s regulatory framework for digital assets, and ensures stablecoin issuers have a real choice when it comes to a state or national charter.”
“From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense,” said Hagerty. “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.”
“Stablecoins enable faster, cheaper, and competitive transactions in our digital world and facilitate seamless cross-border payments,” said Scott. “This legislation will expand financial inclusion and provide much-needed clarity to ensure the industry can innovate and grow here in the United States, while protecting consumers and promoting the U.S. dollar’s global position. I look forward to working with our colleagues – including House Financial Services Chairman French Hill – to advance this legislation to President Trump’s desk.”
“Passing clear and sensible regulations for stablecoins is critical to maintaining U.S. dollar dominance, promoting responsible innovation, and protecting consumers,” said Gillibrand. “The bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins Act protects consumers by requiring stablecoin issuers to maintain one-to-one reserves; prohibiting algorithmic stablecoins; and requiring issuers to comply with U.S. anti-money-laundering and sanctions rules. Importantly, it will empower responsible innovation, maintain U.S. leadership in digital assets and blockchain technology, and keep crypto companies and jobs onshore. The future of stablecoins and cryptocurrency has strong bipartisan support—I’m proud to introduce this bill with Senators Hagerty, Lummis and Scott, and look forward to working together to pass this important legislation.”
The GENIUS Act:
- Defines a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value;
- Establishes clear procedures for institutions seeking charters or licenses to issue stablecoins;
- Implements reserve requirements and tailored regulatory standards for stablecoin issuers;
- For State issuers of more than $10 billion in stablecoins, establishes the Federal Reserve Board as the joint supervisor of depository institutions and the Office of the Comptroller of the Currency (OCC) as the joint supervisor of State nonbank issuers above $10 billion;
- Establishes supervisory, examination, and enforcement regimes with clear limitations.
Full text of the bill can be found here.
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