June 25 (UPI) -- After passing the Senate via cloture, the Guiding and Establishing National Innovation for U.S. Stablecoins Act faces a vote in the U.S. House in the coming weeks.
Proponents of the bill establishing regulations for payments with stablecoins say it is the first step in establishing protections for businesses and consumers while opponents say it lacks important guardrails.
Stablecoin, a form of cryptocurrency that is backed by a more stable asset, such as a currency like the U.S. dollar or a commodity like gold, is designed to maintain a stable value. The GENIUS Act creates legal guidelines for licensing stablecoin issuers and oversight mechanisms to regulate banks and other financial institutions dealing in stablecoins.
Sen. Bill Hagerty, R-Tenn., sponsored the bill in the Senate. He said on the Senate floor that passing the act will improve the speed and efficiency of payment with stablecoins around the globe while creating safeguards to deter illicit activity.
"Stablecoins also advance a vital national interest by driving demand for U.S. Treasuries. A recent report forecasts that with a well-crafted U.S. regulatory framework, stablecoin issuers could become one of the top holders of U.S. Treasuries by the end of this decade -- if not sooner," Hagerty said. "This would strengthen our fiscal position and cement the dollar's status as the world's reserve currency. If we fail to act now, not only will these benefits slip away. Without a regulatory framework, stablecoin innovation will proliferate overseas -- not in America."
