New Stablecoin Rules? Senate Set for Key Vote on GENIUS Act

The proposal, known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, introduces specific rules for issuers, including requirements for reserves, transparency, audits, and licensing.

Senators Bill Hagerty (R-TN) and Tim Scott (R-SC) put forward the bill to provide a clear framework for these digital assets.

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One of the bill’s most notable features is that issuers would have the flexibility to choose between state or federal licensing depending on their market size. It also outlines new standards for foreign-based stablecoin issuers, requiring them to comply with US regulations on reserves, anti-money laundering (AML) practices, and liquidity measures.

Senator Hagerty highlighted the potential benefits of stablecoins, emphasizing their role in improving transaction efficiency and supporting demand for US Treasuries.

Additionally, legal expert Jeremy Hogan noted in a post on X that the bill’s requirements align with what US-based issuers like Ripple and Circle already follow. However, he also pointed out that issuers could be required to comply with future orders to restrict, freeze, or prevent transactions involving stablecoins.

If the vote passes on March 13, the bill could establish a structured approach for stablecoin issuers and advance regulatory policies previously supported by President Donald Trump.

Recently, a group of House Democrats introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act. What does it entail? Read the full story.