Nashville Standard

United States Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks have introduced an updated version of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation aims to create a clear regulatory framework for payment stablecoins.

Senator Hagerty highlighted the potential benefits of stablecoin innovation, stating that it could enhance transaction efficiency and drive demand for U.S. Treasuries. He emphasized that the legislation would establish a "safe and pro-growth regulatory framework" to advance America's position in the crypto industry.

Chairman Tim Scott remarked on the bipartisan nature of the agreement, which resulted from negotiations with various stakeholders. He stated that this legislation would protect consumers and expand financial inclusion across the United States while promoting faster and more competitive transactions through stablecoins.

Senator Gillibrand noted significant improvements in consumer protections, authorized issuers, risk mitigation, state pathways, insolvency, and transparency within the updated GENIUS Act. She expressed confidence that the bill would foster innovation while maintaining U.S. dollar dominance.

Senator Lummis stressed the importance of creating a bipartisan regulatory framework for stablecoins to preserve U.S. dollar dominance and support responsible financial innovation. She mentioned that their bill allows stablecoin issuers to choose between state and national charters.

Senator Alsobrooks called the GENIUS Act a first step toward regulating stablecoins within the broader crypto space. She emphasized ensuring innovation remains in the U.S., protecting Maryland consumers and families.

The background provided explains that dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar, potentially improving transaction efficiency and strengthening global financial positions by driving demand for U.S. Treasuries.