Palmetto State News

Senate Banking Committee Chairman Tim Scott has collaborated with Senators Bill Hagerty, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks to introduce an updated version of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation aims to establish a regulatory framework for payment stablecoins.

The bipartisan effort has been developed through consultations with industry experts, academics, and government officials. "President Trump and the American people gave Congress a mandate to advance legislation to provide clarity for the digital assets industry, including stablecoins," stated Chairman Scott. He emphasized that this agreement will protect consumers and enhance financial inclusion across the country.

Senator Hagerty highlighted the potential benefits of stablecoin innovation, stating that it enhances transaction efficiency and could drive demand for U.S. Treasuries. He expressed his commitment to advancing the bill in collaboration with Chairman French Hill and the House Financial Services Committee.

Senator Gillibrand noted improvements in consumer protections and other provisions within the updated GENIUS Act. She acknowledged the bipartisan nature of this effort as crucial for fostering innovation while maintaining U.S. dollar dominance.

Senator Lummis pointed out that establishing a regulatory framework is essential for preserving U.S. leadership in digital assets, allowing stablecoin issuers to choose between state and national charters.

Senator Alsobrooks emphasized that regulating stablecoins is vital for ensuring innovation remains in the U.S., protecting consumers and families in Maryland.

The GENIUS Act outlines procedures for licensing institutions issuing stablecoins, sets reserve requirements, applies Federal Reserve regulations to large issuers, allows state regulation under certain conditions, and establishes supervisory regimes with clear limitations.