Senator Hagerty Introduces GENIUS Act to Bring Stablecoins Under Fed Supervision
US Senator Bill Hagerty has introduced the GENIUS Act, a bill aiming to bring stablecoins under Federal Reserve supervision. The legislation has gained support from key figures, including Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis. The White House's AI and Crypto Czar, David Sacks, has also shown interest in pushing stablecoin legislation forward.
The GENIUS Act, introduced by Senator Hagerty, seeks to create a safe and growth-promoting regulatory framework for stablecoins. It proposes that stablecoin issuers with a market capitalization over $10 billion, such as Tether and USD Coin, would fall under Federal Reserve regulations. These issuers would need to submit monthly audited reserve reports to ensure transparency and stability.
Currently, the total market value of stablecoins stands at $227 billion. With the growing popularity of stablecoins, this figure is expected to reach $400 billion by the end of 2023. The GENIUS Act aims to manage this growth responsibly, protecting both consumers and the wider financial system.
The GENIUS Act, supported by Senator Elizabeth Warren and Congressman Patrick McHenry, seeks to bring stablecoins under Federal Reserve supervision. By imposing monthly reserve reports and Federal Reserve regulations on large stablecoin issuers, the act aims to promote stability and growth in the stablecoin market, which is projected to reach $400 billion by the end of 2023.
