- The GENIUS Act updates aim to regulate stablecoins, fostering innovation and protecting consumers.
- US-based stablecoin issuers like USDC gain an edge with stricter rules for foreign competitors.
The Republican-led GENIUS Act witnessed a major update amid bipartisan discussions. The US Senate Banking Committee is about to vote on this stablecoin bill on March 13. The bill was updated after the discussion between Republicans and Democrats.
GOP Senator Bill Hagerty, said that he introduced an update of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. He added that this bill brings a clear regulatory framework for stablecoins and its use.
Hagerty emphasizes the importance of stablecoin to enhance transaction efficiency and to drive demand for U.S. Treasuries. He also said that this bill will introduce 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.
On this Senator Gillibrand stated,
“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”
Gillibrand also highlights that this bill demonstrates bipartisan efforts. He said that approval of clear and sensible stablecoin legislation is essential to our country’s growth and future. He ensures that this bill will foster innovation, protect users while maintaining the dominance of the U.S. dollar.
Potential Advantages for US Stablecoin Issuers
The updated legislation would place stablecoins with market capitalizations exceeding $10 billion—currently only Tether (USDT) and Circle’s USD Coin (USDC)—under Federal Reserve regulation. Smaller issuers could opt for state-level oversight instead.
Industry experts note that the revised bill appears to create competitive advantages for US-based stablecoin issuers like Circle’s USDC and Ripple Labs’ Ripple USD (RLUSD).
According to Web3 learning app co-founder Dom Kwok, the bill imposes “extra high standards” on foreign stablecoin issuers regarding reserve requirements, liquidity standards, and compliance measures. Crypto lawyer Jeremy Hogan similarly observed that these requirements “fall neatly” in favor of US-based offerings like USDC and RLUSD.
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