Senators Cynthia Lummis, Bill Hagerty, Kirsten Gillibrand, and Tim Scott have introduced a bipartisan bill aimed at creating a regulatory framework for stablecoins. The legislation, known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, seeks to establish clear guidelines for payment stablecoins in the United States.
Senator Lummis emphasized the importance of a bipartisan approach, stating, “Creating a bipartisan regulatory framework for stablecoins is critical to maintaining the U.S.’s dollar dominance and promoting responsible financial innovation.” She expressed her support for Senator Hagerty’s initiative, highlighting its significance in protecting Wyoming’s digital asset regulations and providing stablecoin issuers with options regarding state or national charters.
Senator Hagerty outlined the potential benefits of strong stablecoin innovation: “From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits are immense.” He noted that his legislation would create a safe regulatory environment that aligns with efforts to position America as a leader in cryptocurrency.
Senator Scott highlighted how stablecoins could facilitate transactions and expand financial inclusion. “This legislation will expand financial inclusion and provide much-needed clarity to ensure the industry can innovate and grow here in the United States,” he said. Scott also mentioned collaboration with House Financial Services Chairman French Hill to advance the bill further.
Senator Gillibrand underscored consumer protection aspects within the proposed framework: “The bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins Act protects consumers by requiring stablecoin issuers to maintain one-to-one reserves; prohibiting algorithmic stablecoins; and requiring compliance with U.S. anti-money-laundering rules.” She stressed that this legislation aims to keep crypto companies within U.S. borders while supporting digital asset leadership.
The full text of the GENIUS Act is available online for public review.
