The bill outlines rules for stablecoin issuance, requiring issuers to provide monthly audited reserve reports and imposing penalties for false reporting.

Co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, the bill emphasizes the need for bipartisan regulation to maintain US dollar dominance.

Hagerty highlighted that the legislation is designed to foster innovation and support President Trump's vision of making the US the 'world capital of crypto.'

On February 4, 2025, Senator Bill Hagerty introduced the GENIUS Act, aimed at establishing a regulatory framework for stablecoins in the United States.

Several working groups have been established to implement Trump's pro-crypto policies, involving key officials from various departments, including the SEC.

The bill aims to improve transaction efficiency and increase demand for US Treasuries, positioning the US as a leader in crypto innovation.

If passed, stablecoins with market caps exceeding $10 billion, such as Tether ($USDT) and USD Coin ($USDC), will be regulated by the US Federal Reserve.

Sacks also emphasized the need for regulatory clarity for crypto entrepreneurs, following years of arbitrary legal actions by the SEC.

The GENIUS Act defines payment stablecoins as digital assets pegged to a fixed monetary value, mandating that they be backed by US currency or secure assets.

Conversely, stablecoin issuers with market caps below $10 billion will be regulated at the state level, although they may apply for exemptions if they surpass this threshold.

During a press conference on February 4, David Sacks, the White House's AI and crypto czar, reiterated the importance of stablecoin legislation for enhancing the US dollar's global dominance.

It remains uncertain whether Hagerty's lighter regulatory approach will garner the necessary Democratic support for passage.