Senate Majority Leader John Thune (R-SD) on Thursday expedited the consideration of stablecoin legislation sponsored by Sen. Bill Hagerty (R-TN) which would establish the first-ever regulatory framework for stablecoins and work to enshrine President Donald Trump as the most pro-crypto president.
Thune “hotlined” or expedited the consideration of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act authored by Sen. Bill Hagerty (R-TN), a Senate Banking Committee member.
The bill is cosponsored by Senate Banking Committee Chairman Tim Scott (R-SC) and Sen. Cynthia Lummis (R-WY), also a member of the Senate Banking Committee.
“The GENIUS Act establishes a clear, pro-growth, and secure regulatory framework to modernize our payments system and cement U.S. dollar dominance,” Hagerty said in a statement.
“I look forward to passing the GENIUS Act in short order to keep digital asset innovation in America, protect customers, and make sure foreign companies are playing by the same rules,” he continued.
Dollar-denominated stablecoins are digital assets that are pegged to the value of the U.S. dollar. Sending stablecoins is more efficient than sending dollars, which helps expand financial inclusion and strengthen the dollar’s leadership as the world’s reserve currency. It also increases demand for U.S. Treasuries.
The GENIUS Act would establish a regulatory framework for these stablecoins by:
- Defining a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value
- Establishing a clear procedure for institutions to obtain licenses to issue stablecoins
- Implementing reserve requirements and “light-touch” regulatory standards for stablecoin issuers
- Having issuers over $10 billion comply with the Federal Reserve’s regulatory framework for depository institutions and Office of the Comptroller of the Currency’s (OCC) framework for nonbank issuers
- Allowing for state regulation of issuers under $10 billion in issuance and providing a waiver process for issuers exceeding the threshold to remain state-regulated
There is a stark contrast regarding crypto between the Trump administration and the Biden administration, which was largely viewed as very hawkish against the crypto industry.
Top cryptocurrency exchanges such as Coinbase and Kraken, the developer of the leading decentralized exchange, and even a marketplace for digital property faced scrutiny from Biden Securities and Exchange Commission (SEC) Chairman Gary Gensler.
Paulo Ardoino, the CEO of Tether, has cheered Trump’s crypto leadership, saying his policies enable American dominance in everything from “crypto to AI.”
“America had always been the top place in the world to do business – it’s where innovators from across the world longed to set up shop,” Ardoino said. “But under Joe Biden, innovation was punished.”
“Just like President Trump, Tether believes the dollar should be the world’s go-to currency for trade and transactions,” he remarked.
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.
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