United States Senator Bill Hagerty addressed the Senate floor, urging his colleagues to support the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation aims to create a regulatory framework for payment stablecoins.
Senator Hagerty emphasized the need for a clear regulatory structure in the U.S., stating that “America urgently needs a clear and comprehensive regulatory framework for payment stablecoins.” He pointed out that the absence of such a framework has pushed digital asset innovation overseas, potentially risking American financial leadership and consumer safety.
The GENIUS Act proposes several key measures. It defines payment stablecoins as digital assets pegged to fixed values and backed by U.S. Treasuries, outlines procedures for issuing these coins, and establishes a regulatory regime balancing federal and state responsibilities. The act also sets standards for safety, stability, consumer protection, transparency, and law enforcement cooperation.
Hagerty highlighted bipartisan support for the act, noting that both parties recognize its potential benefits. He said, “These provisions are pragmatic and forward-looking,” adding that they protect consumers while promoting innovation.
Stablecoin technology could enhance cross-border payments’ speed and efficiency while driving demand for U.S. Treasuries. A recent report suggests stablecoin issuers might become significant holders of U.S. Treasuries under an effective regulatory framework.
Failure to establish this framework may lead to reliance on foreign stablecoins lacking consumer protections and diminish America’s global competitiveness in digital currency innovation. Hagerty warned against ceding leadership to other nations like China in this field.
He acknowledged Senators Scott, Lummis, Gillibrand, Alsobrooks, and others who contributed to making this initiative bipartisan. In closing remarks, he urged his colleagues to support the GENIUS Act: “We have an opportunity to cement America’s financial dominance… I urge all my colleagues to join me in advancing the GENIUS Act.”
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