Sen. Thune to expedite vote on GENIUS Act stablecoins bill

A process that expedites a vote on legislation that establishes the first ever regulatory framework for payment stablecoins was initiated by U.S. Senate Majority Leader John Thune (R-SD).

© Shutterstock

The bill, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, includes several provisions. Specifically, it would:

  • Define a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value;
  • Establish clear procedures for institutions seeking licenses to issue stablecoins;
  • Implement reserve requirements and light-touch, tailored regulatory standards for stablecoin issuers;
  • Allow for state regulation of issuers under $10 billion in issuance and provides a waiver process for issuers exceeding the threshold to remain state-regulated;
  • Establish supervisory, examination, and enforcement regimes with clear limitations; and
  • Apply the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers for issuers of more than $10 billion of stablecoins.

“The GENIUS Act establishes a clear, pro-growth, and secure regulatory framework to modernize our payments system and cement U.S. dollar dominance. I look forward to passing the GENIUS Act in short order to keep digital asset innovation in America, protect customers, and make sure foreign companies are playing by the same rules,” Sen. Bill Hagerty (R-TN), the bill’s author, said.

It was cosponsored by Sens. Tim Scott (R-SC) and Cynthia Lummis (R-WY).

“Our landmark stablecoin legislation is a huge victory for the digital asset industry and a critical step in securing our nation’s financial future,” Lummis said. “The GENIUS Act strikes the balance of establishing proper guardrails that protect consumers while preserving financial innovation and America’s dollar dominance in the global financial system. President Trump and Leader Thune’s decision to bring this important legislation to the floor demonstrates his commitment to maintaining U.S. leadership in financial services while keeping digital asset companies and jobs onshore.”

Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar. They can be used to improve transaction efficiency, expand financial inclusion, and strengthen the dollar as the world’s reserve currency by driving demand for U.S. Treasuries.

“The GENIUS Act is a critical first step towards delivering on President Trump and the American people’s mandate to advance a regulatory framework for digital assets – and will protect consumers and expand financial inclusion across the country,” Scott said. “I look forward to voting for the bill on the floor and the Senate taking historic action to provide the industry with the clarity it deserves.”