Senator Bill Hagerty, along with Senators Tim Scott, Cynthia Lummis, and Kirsten Gillibrand, has introduced an updated version of the GENIUS Act , aiming to strengthen the regulatory framework for stablecoins in the US. Initially proposed in February, this bipartisan legislation now includes additional provisions to address global concerns and improve oversight while maintaining a focus on fostering innovation. The revised bill reflects feedback from industry leaders and policymakers, introducing measures that could significantly impact both domestic and international stablecoin markets. One of the most significant changes is the expansion of regulations for stablecoins issued overseas . The updated bill mandates that the Secretary of the Treasury must establish agreements with other countries that have similar regulatory standards. These agreements will set clear requirements for reserve management, supervision, anti-money laundering protocols, and compliance with sanctions. The goal is to enhance the global stability of stablecoins and ensure smooth cross-border transactions. This move also aims to protect US interests by aligning foreign-issued stablecoins with US regulations. The bill sets a strict two-year deadline for finalizing these international agreements. The legislation also expands the definition of "Comptroller-regulated entities" , which now includes federally approved nonbank stablecoin issuers and other authorized financial institutions. This adjustment gives regulators greater control over the entities permitted to issue stablecoins, ensuring they meet the required legal and financial standards. The goal is to create a structured environment where only compliant organizations can participate in the growing stablecoin sector, ultimately strengthening investor confidence and market stability. Another major aspect of the revised GENIUS Act is the inclusion of strict compliance measures for stablecoin issuers . Under the new rules, issuers must have the capability to comply with legal orders that require blocking, freezing, or seizing stablecoin assets. This means that if authorities demand action against a particular account or transaction, stablecoin issuers must have the technology and processes in place to enforce these legal directives. Additionally, issuers of foreign stablecoins will not be allowed to operate in the US unless they meet all the requirements outlined in the bill. Senator Hagerty emphasized that stablecoins could play a critical role in strengthening financial efficiency and boosting demand for US Treasuries. He stated that this bill ensures a balance between regulatory clarity and market innovation , reinforcing the US as a leader in the global crypto industry. Senator Gillibrand echoed this sentiment, noting that the updates address key areas such as consumer protections, risk management, transparency, and legal oversight. The timing of this bill is critical as discussions around cryptocurrency regulation continue to gain traction in the US. The Senate Committee on Banking, Housing, and Urban Affairs has scheduled a review session for the bill on March 13, 2025. This will be a pivotal moment in determining how stablecoins are regulated in the future and whether the GENIUS Act can successfully bridge the gap between financial innovation and legal oversight. With the expansion of global cooperation, increased compliance measures, and a clear regulatory framework for issuers, the GENIUS Act represents a major step toward integrating stablecoins into the US financial system. However, questions remain about how the new rules will affect existing projects and whether foreign issuers will be willing to adapt to US regulations . As lawmakers continue to debate the bill, the crypto industry will be watching closely to see how these changes impact the broader digital asset landscape.
