March 10, 2025

Scott Joins Hagerty, Colleagues in Reintroducing Updated Legislation on Stablecoins

Senate Banking Committee to vote on GENIUS Act on Thursday

Washington, D.C. – Senate Banking Committee Chairman Tim Scott (R-S.C.) joined Senators Bill Hagerty (R-Tenn.), Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Angela Alsobrooks (D-Md.) in introducing an update of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, legislation to establish a clear regulatory framework for payment stablecoins.

The bipartisan legislation has benefited from extensive consultation with industry participants, academic experts, and government stakeholders.

“President Trump and the American people gave Congress a mandate to advance legislation to provide clarity for the digital assets industry, including stablecoins,” said Chairman Scott. “This bipartisan agreement – the result of negotiations with stakeholders, industry, and members of both parties – will protect consumers and expand financial inclusion for Americans across the country. Stablecoins enable faster, cheaper, and competitive transactions and facilitate seamless cross-border payments. This legislation will ensure the industry can innovate and grow here in the United States while promoting the U.S. dollar’s global position.”

“From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense,” said Senator 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. I look forward to working with Chairman French Hill and the House Financial Services Committee to get it to the President’s desk and signed into law.”

“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,” said Senator Gillibrand. “This bill represents a true bipartisan effort, and I want to thank all our partners for their willingness to seek and find common ground. Passing clear and sensible stablecoin legislation is essential to our country’s future, and I’m confident this bill will foster innovation, protect consumers, and maintain the dominance of the U.S. dollar.”

“Creating a bipartisan regulatory framework for stablecoins is fundamental to preserving U.S. dollar dominance and advancing responsible financial innovation,” said Senator Lummis. “Senator Hagerty and my bill secures stablecoin issuers’ ability to choose between state and national charters and takes a decisive step toward cementing America’s leadership in the digital asset economy.”

“The bipartisan GENIUS ACT is our first step for determining how we as a country will regulate stablecoins, an important piece of the broader crypto space,” said Senator Alsobrooks. “I believe we need to take an active role in ensuring innovation stays in the U.S. and that Maryland consumers and hard working families are protected.”

BACKGROUND:

Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar. They can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries. This bipartisan legislation turns a new page for crypto by providing clear regulatory guidelines and fostering innovation.

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 licenses to issue stablecoins;
  • Implements reserve requirements and tailored regulatory standards for stablecoin issuers;
  • For issuers of more than $10 billion of stablecoins, applies the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers;
  • Allows for state regulation of issuers under $10 billion in market capitalization and provides a waiver process for issuers exceeding the threshold to remain state-regulated; and
  • Establishes supervisory, examination, and enforcement regimes with clear limitations.

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