US Senator Introduces Updated GENIUS Bill to Regulate Stablecoins
Date: 2025-03-12 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
US Senator Bill Hagerty introduced an updated version of the GENIUS National Stablecoin Innovation Act ahead of a key vote in the Senate Banking Committee on March 13. According to a statement on March 10, the updated bill strengthens regulations for stablecoin issuers by clarifying consumer protection rules, reserve requirements, and oversight.
One of the most significant changes is a tougher stance on stablecoin issuers outside the US. In a March 11 post on X, Web3 Apps founder Dom Kwok noted that such issuers are being held to “very high standards” for reserves, liquidity, and compliance. The move is intended to give U.S. issuers like Circle and Ripple a “competitive advantage.”
However, the basic structure of the bill remains the same: issuers with a market cap of over $10 billion would be supervised by the Federal Reserve, while smaller issuers would remain under state oversight. The new bill also includes stronger compliance and risk management mechanisms, which are aimed at maintaining financial stability and regulatory compliance.
“Stablecoins facilitate faster, cheaper, and more competitive transactions, and enable seamless cross-border payments. This bill ensures that the industry can grow and innovation can continue here in the U.S., strengthening the global position of the U.S. dollar,” said Tim Scott, chairman of the Senate Banking Committee.
The amendments to the bill were the result of bipartisan work by lawmakers with industry participants, academics, and regulators, which resulted in improvements to certain provisions of the bill.
The Senate Banking Committee is scheduled to vote on the bill on March 13. If approved, it will go to the Senate for debate and then to the House of Representatives. Once both chambers approve the bill, it will be sent to President Donald Trump for signature.
As previously reported, Hagerty introduced the GENIUS bill in February 2025. One of the key provisions is the requirement that all stablecoins be fully backed by government bonds, US dollars, or Federal Reserve notes.
Meanwhile, the stablecoin market has expanded significantly over the past few years, growing from a niche sector to a multi-billion dollar industry. According to a February report from OurNetwork, stablecoins now make up more than 1% of the M2 money supply in the US.
