Overview

• The GENIUS Act, authored by Senator Bill Hagerty and co-sponsored by Senators Tim Scott and Cynthia Lummis, proposes the first federal regulatory framework for stablecoins in the U.S.
• Senate Majority Leader John Thune initiated expedited procedures to bring the bill to a floor vote following an 18-6 bipartisan committee approval.
• The legislation outlines licensing standards, reserve requirements, and oversight for stablecoin issuers, aiming to modernize payments and reinforce U.S. dollar dominance.
• The Senate and House bills share significant similarities but differ on reserve asset eligibility and treatment of algorithmic stablecoins, with reconciliation talks ongoing.
• Traditional banking advocates criticize the bill, citing risks to consumers and concerns over competition with FDIC-insured banks, while the Trump administration pushes for swift passage before the August recess.