United States Senator Bill Hagerty (R-TN) has introduced the guidance and establishment of national innovation for US Stablecoins (Genius), which would create a regulatory framework for US Dollar-Peggad StablecoinsIncluding to ban algorithmic stablecoins, which require one-to-one reserves and ensure that issuers follow the anti-money (AML) and the sanctions rules.
In a statement on February 4, Tennessee Republican mentioned Genius Act “establishes a safe and pro-growth regulation frame that will release innovation and promote the president’s mission to make America Crypto’s world capital.”
Among the most important goals for Genius is to define payment As “a digital asset used for payment or settlement linked to a fixed monetary value”, determine clear procedures for companies that seek licenses to issue Stablecoins, and “Light-Touch, customized legislative standards” for issuers.
The bill would also establish “supervisory, investigative and enforcement regimes with clear restrictions”, possibly refer to Securities and Exchange Commission’s (SEC) strategy for supervisory surveillance according to former chairman Gary Genseswhich was often accused – which is unfair – by regulatory overreaction.
In the case of specific standards for StableCoin issuers, Genius Act includes a ban on Algorithmic Stablecoins—Gigital assets that maintain price stability through automated algorithms and smart contracts, rather than supported by traditional assets, such as Fiat reserves, Bond or fund and a mandate to maintain reserves that support Stablecoins on at least one-to-one foundation, reserves such as may not be “pledged, repetitions or reused.”
It also requires that Stablecoin issuers publish a monthly report on their website containing the total number of outstanding stablecoins and the amount and composition of the reserves. This information must then be reviewed by a registered public accounting company.
The bill is supported by the chairman of Senate Banks, Housing and City issues Tim Scott (R-SC), together with the Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY).
“This legislation will extend financial inclusion and provide demand clarity to ensure that the industry can renew and grow here in the United States, while protecting consumers and promoting the US dollar’s global position,” Scott said. “I look forward to working with our colleagues … to promote this legislation to President Trump’s desk.”
Democratic fellow signals Gillibrand emphasized the two -party tasks of the bill, while emphasizing their double goals for consumer protection and support for US innovation.
“Passing clear and sensible regulations for Stablecoins is crucial to maintaining dominance in the US dollars, promoting responsible innovation and protecting consumers,” said Gillibrand, and added that, “Stablecoin’s future and Cryptocurrency have strong two -party support – I am proud to introduce this invoice. “
Genius Act is based on the draft draft Hagerty submitted In October last year for the former chairman of House Financial Services Committee Patrick Mchenry’s Clarity for payment of Stablecoins Act.
On Tuesday Hagerty Posted On X that he was looking forward to working with Mchenry’s successor, New House Financial Services Committee Chairman Rep. French Hill (R-AR), to get Genius Act “to the president’s desk and signed by law.”
The accounting proposal also coincided with a February 4 press conference By the White House AI and Digital Asset Czar David Sacks, who expressed support to develop legislation in the coming months.
“Stablecoins have the potential to ensure US dollar dominance internationally to increase the use of the US dollar digitally as the world’s spare currency and in the process create potential trillion dollars demand for the US Treasury,” Sacks said.
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