Senator Bill Hagerty has proposed a bill aimed at setting clear rules for stablecoins, digital currencies tied to the US dollar, according to a February 4 statement.
Known as the “Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act”, the bill would introduce federal oversight for large stablecoin issuers while allowing smaller ones to follow state regulations.
Under this plan, companies managing stablecoins worth more than $10 billion would need to comply with Federal Reserve guidelines. Those below that level would remain under state control.
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The proposal also requires all issuers to submit monthly reports proving they have enough reserves to support their tokens. Providing false information could lead to criminal charges.
Hagerty introduced the bill alongside Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis.
Hagerty also linked the bill to an effort to strengthen the US position in cryptocurrency, which aligns with a past statement from President Donald Trump about making the country a leader in digital finance. He described the bill as “a safe and pro-growth regulatory framework that will unleash innovation”.
In a February 4 post on X, Senator Hagerty stated he looks forward to working with Representative French Hill and the House Financial Services Committee to push the bill forward.
Meanwhile, Howard Lutnick, President Trump’s nominee for Commerce Secretary, recently faced questions about stablecoins and financial transparency during his Senate confirmation hearing. How did he respond? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
