The U.S. Senate Banking Committee is set to vote on a bipartisan bill known as the GENIUS Act, aimed at regulating stablecoins. Sponsored by Senators Bill Hagerty and Tim Scott, the legislation seeks to establish a clear regulatory framework addressing reserve requirements, audits, transparency, and licensing for stablecoin issuers. If passed, the bill would strengthen consumer protection and align with President Donald Trump's vision for the crypto sector. The act allows issuers to choose between federal and state charters based on their market capitalization and introduces regulations that require foreign issuers to comply with U.S. standards on reserves and anti-money laundering provisions. Notably, this legislation may create competitive advantages for U.S.-based stablecoin issuers over foreign counterparts like Tether, which may struggle to adjust to new compliance standards. The financial sector anticipates that issuers will need to make operational adjustments to align with the proposed requirements, potentially impacting their ability to maintain market stability.

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