The members of the U.S Senate Banking Committee are expected to vote on the GENIUS Act bill this week thursday. This bipartisan bill strives to provide clearer rules and policies for stablecoin within the United State.
According to reports, his bill is sponsored by Senators Bill Hagerty (R-TN) and Tim Scott (R-SC), and it’s intended to address issues like reserve requirements, audits, and licensing for stablecoin issuers.
What the GENIUS Act Could Mean for the Stablecoin Market?
The GENIUS Act could make a big difference for how US stable coins operate. Despite focusing strongly on consumers’ security it also aims to let stable coins bloom more freely as a whole.
If the Act passes, it would make things clearer for issuers too.
Senator Hagerty in a statement noted that stablecoin unlock a new phase of possibilities by improving the rate of transactions and the demand for U.S Treasuries.
“This legislation establishes a framework that will foster growth, innovation, and stability,” he said.
With this new bill, companies that issue stablecoins would have the option to either charter granted by the federal or state. However, this depends on the size of their market.
Additionally, it would introduce “reciprocity” agreements, meaning foreign stablecoin issuers would need to meet U.S. standards for reserves, anti-money laundering, and liquidity.
The Impact on U.S. and Foreign Stablecoins
Meanwhile, people reacted differently to this bill. Some think it will even put more pressure on the issuers, while others believe that it could create a leveling field, especially for U.S.-based stablecoins like Circle’s USDC and Ripple’s RLUSD.
However, the bill is almost in motion. If approved, it could be a big change for the U.S stablecoin market.
