A group of U.S. senators has introduced a new bill to create clear rules for stablecoins. Senator Tim Scott, along with Senators Bill Hagerty, Cynthia Lummis, and Kirsten Gillibrand, announced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
They believe this bill will help stablecoins grow while keeping consumers safe and ensuring the U.S. remains a leader in digital finance.
Stablecoins make digital transactions faster and cheaper, helping people send money across borders easily, Senator Scott stated. He said this bill will give businesses and consumers clear guidelines, allowing innovation to thrive while keeping the U.S. dollar strong worldwide.
Senator Hagerty added that stablecoins could boost demand for U.S. Treasuries and make transactions more efficient. He described the bill as a “pro-growth” plan that will encourage crypto innovation in America.
Senator Lummis believes that stablecoins need proper regulation to protect their role in the financial system. The bill respects Wyoming’s existing digital asset laws and gives stablecoin issuers a choice between state or national oversight, according to the senator.
For Senator Gillibrand, the bill would require stablecoin issuers to keep full reserves, ban risky algorithmic stablecoins, and follow anti-money laundering laws.
While stablecoins offer benefits like faster transactions and greater financial access, unclear regulations have slowed innovation in the U.S.
The GENIUS Act aims to change that by setting clear licensing rules for stablecoin issuers, ensuring they hold enough reserves, and allowing both state and federal regulation.
Data from CEX.io reveals that in 2024, stablecoin transaction volume exceeded that of Visa and Mastercard combined by 7.7%. Tether (USDT), a U.S. dollar-backed stablecoin, accounted for nearly 80% of this total. This shows a strong global demand for stablecoins, from developed countries to developing nations using them to escape inflation.
The Trump administration’s support for the digital asset industry has further fueled this growth. Trump also signed an executive order to stop the development of a CBDC.
This provides more resources to be focused on stablecoin development instead of CBDC. He has also invited pro-crypto leaders to join his administration, aiming to position the U.S. as a leader in the digital asset space.
