US Legislators Unveil Updated GENIUS Act for Stablecoin

US lawmakers have presented an updated version of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This was led by a bipartisan coalition comprising Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, Cynthia Lumis, and Angela Alsobrooks.

The GENIUS Act aims to lay out structured regulations for stablecoin issuers. Such a structure strives to maintain consumer protection, financial stability, and national economic interests.

What Are the Updates to the GENIUS Act?

One of the updates on the GENIUS Act is the increased threshold for state regulatory authority over stablecoins. Specifically, states would now be allowed to oversee stablecoin issuers in collaboration with federal authorities. They are given a market cap of up to $10 billion, giving them more oversight in stablecoin market regulation.

The newest draft of the bill also includes a waiver process. This allows larger issuers to remain solely under state supervision if they meet specific criteria.

Stablecoin issues who wish to get a waiver and remain under state supervision must demonstrate a good overall standing. Issuers need strong capital, a good track record, and be supervised by what the bills calls an experienced state regulator.

New transparency and disclosure requirements for issuers are also introduced in the updated Act. Issuers are required to publish monthly liquidity reports detailing the composition of their reserves, including the total number of outstanding stablecoins.

Moreover, stablecoin issuers are also required to create mechanisms that would allow them to comply with orders to freeze transactions. They would also grant the Secretary of the Treasury authority to block and prohibit transactions issued by foreign persons or entities.

Lastly, under the latest version of the bill, reserves are required to be U.S. currency, demand deposits, Treasuries, or other “approved assets.”

GENIUS Act Proponents Await Senate Banking Committee Amendments

The GENIUS Act is part of a broader legislative effort to establish a stablecoin framework in the U.S. Its main proponents align with competing proposals like the Clarity for Payment Stablecoins Act and the Lummis-Gillibrand Payment Stablecoin Act.

Both proposals also impose strict reserve requirements, mandate transparent redemption policies, and require stablecoin issuers to undergo third-party audits. However, the GENIUS Act has gained momentum due to its bipartisan backing and alignment with the Trump administration’s pro-crypto stance.

That said, the Act will be scrutinized by the Senate Banking Committee. Once they are done, it will then be passed to the Senate for deliberation, and final voting.

Should the GENIUS Act be approved by the Senate, it will be a transformative moment for US digital asset markets. For the burgeoning crypto casino industry, players will have a safer environment where they can leverage their digital assets.