U.S. Stablecoin Bill Proposes State-Federal Oversight and New Transparency Rules
The draft of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act proposes changes in stablecoin regulation:
- Regulation split between state and federal authorities
- States can oversee issuers with market caps up to $10 billion
- Waiver process allows larger issuers to remain under state supervision if criteria are met
- Issuers must publish monthly liquidity reports detailing reserve composition
- Reserves must consist of U.S. currency, demand deposits, Treasuries, or approved assets
- Mechanisms required to comply with transaction freeze orders
- Secretary of the Treasury can block transactions involving foreign entities
- Stablecoin issuers designated as financial institutions for AML purposes
The bill is pending amendments by the Senate Banking Committee before being sent for full Senate debate.