Key takeout
- The Genius Stablecoin Bill is about to create a regulatory framework for Stablecoins in the US.
- The bill allows federal oversight for issuers with market capitalizations of more than $10 billion.
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The Senate Banking Committee is scheduled to review Sen. Hagerty's Stablecoin Bill, known as the Genius Act, on March 10, according to three Senate aides who are familiar with the issue.
scoop: @bankinggop We are focusing on the markup for the week of March 10th. @senatorhagertyStablecoin Bill (Genius Law) is about three Senate aides who are well-versed in matter.
– Eleanorterrett (@Eleanorterrett) February 28, 2025
Introduced by Senator Hagerty on February 4, 2025, the bill restricts regular issuance to permitted entities, including subsidiaries of insured depository institutions, federally accredited non-bank payment stable issuers, and nationally qualified payment stablecoin issuers.
Under the proposed framework, issuers with market capitalization of more than $10 billion will face federal oversight, while issuers below that threshold can choose state regulations if their state meets federal standards.
The bill requires Stablecoins to maintain US dollars or other approved high quality liquid assets at full 1:1 support.
The Genius Act also prohibits the stability of the algorithm and requires the publication of redemption policies and regular preliminary audits.
This regulatory push is in line with global developments, including the recent European Union Market (MICA) and recent approvals for the Circle USDC and EURC Stubcoin by the Dubai Financial Services Authority.
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