U.S. Senate's Effort on Stablecoins Revealed in New Bill from Hagerty
The U.S. Senate is poised to advance a new stablecoin oversight bill introduced by Senator Bill Hagerty. With Republicans now in charge, the bill aims to create a regulatory framework for dollar-denominated stablecoins. Hagerty's proposal, known as the GENIUS Act, would define payment stablecoins and delineate the roles of regulators, with the Federal Reserve overseeing large bank issuers and the Office of the Comptroller of the Currency regulating nonbank issuers exceeding $10 billion. Smaller issuers would fall under state regulators. This new direction contrasts with previous efforts that faced obstacles due to bipartisan disagreements, particularly regarding state versus federal regulatory authority. The bill's introduction marks the Senate’s effort to facilitate stablecoin regulation in response to the growing crypto market. However, it remains uncertain whether it will garner support from Democrats given its comparatively lighter regulatory approach. Stablecoins, designed to maintain stable value, have seen significant growth, with leading examples being Tether (USDT) and Circle (USDC).
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