Hagerty Leads Legislation to Establish a Stablecoin Regulatory Framework

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February 4, 2025
WASHINGTON—United States Senators Bill Hagerty (R-TN), a member of the Senate Banking Committee, Tim Scott (R-SC), Chairman of the Senate Banking Committee, Kirsten Gillibrand (D-NY), and Cynthia Lummis (R-WY) today introduced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, legislation to establish a clear regulatory framework for payment stablecoins.Based on a public discussion draft released by Hagerty in October 2024, the legislation has benefited from extensive consultation with industry participants, academic experts, and federal government stakeholders.
“From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense,”said Senator Hagerty.“My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto. I look forward to working with Chairman French Hill and the House Financial Services Committee to get it to the President’s desk and signed into law.”“Stablecoins enable faster, cheaper, and competitive transactions in our digital world and facilitate seamless cross-border payments,”said Chairman Scott.“This legislation will expand financial inclusion and provide much-needed clarity to ensure the industry can innovate and grow here in the United States, while protecting consumers and promoting the U.S. dollar’s global position. I look forward to working with our colleagues – including House Financial Services Chairman French Hill – to advance this legislation to President Trump’s desk.”“Passing clear and sensible regulations for stablecoins is critical to maintaining U.S. dollar dominance, promoting responsible innovation, and protecting consumers,”said U.S. Senator Kirsten Gillibrand.“The bipartisanGuiding and Establishing National Innovation for U.S. Stablecoins Actprotects consumers by requiring stablecoin issuers to maintain one-to-one reserves; prohibiting algorithmic stablecoins; and requiring issuers to comply with U.S. anti-money-laundering and sanctions rules. Importantly, it will empower responsible innovation, maintain U.S. leadership in digital assets and blockchain technology, and keep crypto companies and jobs onshore. The future of stablecoins and cryptocurrency has strong bipartisan support—I’m proud to introduce this bill with Senators Hagerty, Lummis and Scott, and look forward to working together to pass this important legislation.”“Creating a bipartisan regulatory framework for stablecoins is critical to maintaining the U.S.’s dollar dominance and promoting responsible financial innovation,”said Senator Lummis.“I’m proud to support Sen. Hagerty’s important legislation, which goes a long way towards protecting Wyoming’s regulatory framework for digital assets, and ensures stablecoin issuers have a real choice when it comes to a state or national charter.”Background:Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar. They can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries. The previous Administration’s hostility toward crypto and refusal to provide clear regulatory guidelines has severely stifled stablecoin innovation. This legislation turns a new page.TheGENIUS Act:
Full text of theGENIUS Actcan be foundhere.A one-page overview of the legislation can be foundhere.
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