Senator Hagerty’s Bipartisan Bill on Stablecoins

Key Takeaways

• The GENIUS stablecoin bill aims to create a regulatory framework for stablecoins in the US.
• It permits federal oversight for issuers with over $10 billion in market capitalization.

The Senate Banking Committee is set to review Senator Hagerty’s stablecoin bill, the GENIUS Act, during the week of March 10, as reported by three Senate aides.

> 🚨SCOOP: @BankingGOP is eyeing the week of March 10 for a markup of @SenatorHagerty’s stablecoin bill (the GENIUS Act), per three Senate aides.
>
> — Eleanor Terrett (@EleanorTerrett) February 28, 2025

Introduced by Senator Hagerty on February 4, 2025, the bill restricts stablecoin issuance to approved entities, including subsidiaries of insured depository institutions, federal-qualified nonbank payment stablecoin issuers, and state-qualified payment stablecoin issuers.

Issuers with over $10 billion in market capitalization will be under federal oversight, whereas those below this threshold can opt for state regulation if meeting federal standards.

The bill mandates stablecoins to have a full 1:1 backing with US dollars or other approved high-quality liquid assets, such as short-term Treasury bills and repurchase agreements.

Additionally, the GENIUS Act prohibits algorithmic stablecoins and requires public disclosure of redemption policies along with regular reserve audits.

This regulatory push aligns with global developments, including the EU’s Markets in Crypto-Assets law (MICA) and recent approvals of Circle’s USDC and EURC stablecoins by the Dubai Financial Services Authority.