Senator Bill Hagerty and his co-sponsors, Senators Tim Scott, Cynthia Lummis, and Kirsten Gillibrand, have given the GENIUS Act stablecoin bill a much-needed makeover.
First introduced in February, the revamped bipartisan legislation now incorporates feedback from a wide range of industry participants. It includes several key modifications to improve and advance the regulatory framework for stablecoins in the US.
GENIUS Act: The Latest Updates to Stablecoin Regulation
Senator Hagerty emphasized that strong stablecoin innovation has immense potential, ranging from improving transaction efficiency to increasing demand for US Treasuries.
“My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto,” he said.
The most notable update is the expansion of the section “Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions.” The original bill addressed cross-border stablecoin issuance, but the new version broadens this section to include specific requirements for overseas stablecoins.
It requires the Secretary of the Treasury to establish reciprocal arrangements with countries with similar regulatory frameworks. These arrangements cover reserve requirements, supervision, anti-money laundering, sanctions compliance, and liquidity standards.
These aim to improve international transactions and interoperability with US dollar-denominated stablecoins. The bill also sets a two-year deadline for completing these agreements.
The updated GENIUS Act expands the definition of a “Comptroller-regulated entity” to include both Federal qualified nonbank payment stablecoin issuers and any organization authorized by the Comptroller.
Furthermore, the bill includes new rules for issuers about blocking transactions and following legal orders. The Secretary of the Treasury must work with them before blocking transactions involving the property of a foreign person. Nonetheless, the Secretary does not need to notify the issuer before taking action.
The Act also requires issuers to have the technology needed to follow legal orders. These issuers must be able to freeze, seize, or stop the transfer of stablecoins if required by law. Issuers cannot offer or trade foreign stablecoins in the US unless they meet the Act’s legal requirements.
“The updated version of the GENIUS ACT makes significant improvements to a number of important provisions, including consumer protections, authorized stablecoin issuers, risk mitigation, state pathways, insolvency, transparency, and more,” Senator Gillibrand remarked.
The GENIUS Act’s reintroduction comes amid a broader push for cryptocurrency regulation in the US. On March 13, 2025, at 10:00 a.m. ET, the Senate Committee on Banking, Housing, and Urban Affairs will hold an executive session to review the bill.
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2025-03-11 10:09