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.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What Are Oracles in Crypto? (Beginner Friendly Animation)
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.
