Senator Bill Hagerty is set to introduce a new stablecoin bill as the largely crypto-friendly Republican Party seeks further regulatory clarity for the industry.
The bill dubbed “Guiding and Establishing National Innovation for US Stablecoins” or GENIUS Act, outlines a regulatory environment for the quickly expanding stablecoin market in the United States. Tether’s (USDT) and Circle’s (USDC) are currently the two top stablecoins by market share.
Hagerty confirmed the bill’s introduction via a post on X. Bloomberg reported on the development earlier in the day. The legislator noted:
“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.”
The stablecoin bill comes a few months after Hagerty unveiled draft legislation on the topic in October 2024. This effort aligns with similar proposals pushed in the House of Representatives, including drafts from former House Financial Services Committee chair Patrick McHenry and ranking committee member Rep. Maxine Waters.
The GENIUS Act is co-sponsored by Sen. Kirsten Gillibrand, Sen. Tim Scott, and Sen. Cynthia Lummis.
Lummis is a key crypto advocate on Capitol Hill, and recently became the Senate Banking Subcommittee on Digital Assets’ first chair. The Wyoming Senator’s pro-crypto voice has included the push for a Bitcoin (BTC) strategic reserve.
President Trump signed an executive order that supports the establishment of a U.S. strategic digital assets stockpile. The EO also outlined the creation of a crypto working group, with the tasks expected including on regulatory clarity. Stablecoins form a major part of this framework.
Specifically, the GENIUS Act aims to establish a regulatory framework that positions the U.S. as the “crypto capital of the world.” Among its key provisions is a requirement that all stablecoins be backed by U.S. Treasury bills, U.S. dollars, and Federal Reserve notes.
The bill will require issuers to back all issued stablecoins with Treasury bills, U.S. dollars, and Federal Reserve notes. Issuers will also be required to undertake and publish monthly audit reports.
Hagerty has stated that he will work with U.S. House Financial Services Committee chair Rep. French Hill to advance the bill to President Trump’s desk.
