- Senate unveils GENIUS Act amid tough negotiations.
- Key players include Hagerty, Scott, and Gillibrand.
- Market impacts concern stablecoin reserves and federal oversight.
Key U.S. senators, including Hagerty, Scott, Gillibrand, and Lummis, released the GENIUS Act of 2025 stablecoin bill amid ongoing negotiations, with a scheduled markup in January 2026.
The stablecoin bill’s regulatory framework could reshape the digital currency landscape by enforcing strict reserve rules, potentially affecting payment systems and state-regulated issuers, catalyzing financial market stability.
The U.S. Senate has released the text for the GENIUS Act of 2025, a bill focused on a stablecoin regulatory framework. This development comes as negotiations continue among key political figures. The bill has significant implications for the cryptocurrency market.
Key senators involved are Bill Hagerty, Tim Scott, Kirsten Gillibrand, and Cynthia Lummis. Hagerty championed the bill with support from Senate Banking Committee members. “We’re introducing this bill to provide a clear regulatory framework for stablecoins that can benefit consumers and innovators alike,” said Hagerty. The negotiations are ongoing, with a planned markup early next year.
The bill aims to regulate payment stablecoins with rules regarding reserves and market caps. Issuers are required to comply with federal standards, affecting how these stablecoins are managed within the market. This represents a new landscape for digital currencies, discussed previously by
Angela Alsobrooks proposed an amendment to address stablecoin rewards. The amendment allows rewards on transactions while barring them on idle balances. Such measures aim to encourage transactional use and cap passive holdings.
With the release of this bill, stablecoin issuers must prepare for changes in regulatory oversight. Nonbank issuers can now attain federal qualifications, impacting their operational standards and market outlook, as noted in a Federal Reserve speech by Governor Bowman.
The GENIUS Act sets a precedent for federal regulation of payment stablecoins, enforcing 1:1 reserve requirements and liquidity standards. Historically, stablecoin efforts have varied, but federal oversight aims to standardize practices. Further insights can be explored through a Draft on Market Structure in Financial Services.
