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US Senator Bill Hagerty Pushes for Regulatory Clarity With New Stablecoin Bill

Senator Bill Hagerty is preparing to introduce a new bill aimed at providing a structured regulatory framework for stablecoins. As the Republican Party continues its push for clearer regulations in the crypto industry, this legislative effort seeks to establish guidelines for the rapidly growing stablecoin market in the United States.

The proposed legislation, known as the “Guiding and Establishing National Innovation for US Stablecoins” (GENIUS) Act, is designed to create a clear legal environment for stablecoins, which play an increasingly significant role in the financial ecosystem. Currently, Tether’s USDT and Circle’s USDC dominate the stablecoin market by share.

Hagerty confirmed the bill’s introduction in a post on X, with Bloomberg reporting on the development earlier in the day. “Today, I’m introducing the GENIUS Act with Senator Tim Scott, Sen. Gillibrand, & Sen. Lummis, a bill that establishes a clear regulatory framework for stablecoins,” he stated.

The bill follows Hagerty’s previous efforts, including draft legislation introduced in October 2024. It aligns with similar proposals put forward in the House of Representatives, such as those led by former House Financial Services Committee Chair Patrick McHenry and ranking committee member Rep. Maxine Waters. The GENIUS Act is co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, who has been a strong advocate for cryptocurrency regulations in Congress.

Lummis, a prominent supporter of digital assets on Capitol Hill, recently assumed the role of chair for the Senate Banking Subcommittee on Digital Assets. Her influence has included advocating for a Bitcoin strategic reserve, further cementing her commitment to integrating cryptocurrency into national financial policies.

President Trump has also shown interest in the evolving digital asset space. A recent executive order he signed supports the creation of a U.S. strategic digital assets reserve and establishes a working group focused on regulatory clarity. Stablecoins are expected to play a crucial role in this framework, as the government seeks to balance financial innovation with investor protection.

One of the key provisions of the GENIUS Act is a requirement that all stablecoins be backed by secure assets such as U.S. Treasury bills, U.S. dollars, and Federal Reserve notes. This measure is intended to ensure stability and prevent the risks associated with unregulated digital currencies. Additionally, stablecoin issuers will be required to conduct and publish monthly audits, enhancing transparency and investor confidence.

Hagerty has emphasized his commitment to working alongside House Financial Services Committee Chair Rep. French Hill to advance the bill through Congress. If successful, the legislation would mark a significant step toward positioning the United States as a global leader in cryptocurrency regulation, fostering a stable and predictable environment for both investors and financial institutions.

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