US Senator Bill Hagerty has introduced a bill aimed at establishing a regulatory framework for Stablecoins, bringing Tether (USDT) and USD Coin (USDC) tokens under the supervision of the Federal Reserve.
Table of Contents
ToggleStablecoin Regulatory Framework
According to Cointelegraph, the Republican Senator from Tennessee stated in a statement on February 4 that this Stablecoin Bill will create a "safe and growth-friendly regulatory framework to unleash innovation" and advance the vision promised by former US President Donald Trump - to make America the global capital of cryptocurrencies.
The full name of the bill is the "Guidance and Innovation for Sustainable Tokenization of the United States (GENIUS) Act", and it has currently received support from Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis.
Hagerty stated on X (formerly Twitter) that he looks forward to working with Congressman French Hill and the House Financial Services Committee to get the bill passed and signed into law as soon as possible.
Key Contents of the Stablecoin Bill
Hagerty's Stablecoin Bill is based on the discussion draft of the "Clarity for Payment Stablecoins Act" proposed by former Congressman Patrick McHenry in October 2024, and further expands the regulatory scope.
The bill defines Stablecoins as digital assets pegged to the US Dollar, and proposes different regulatory standards for issuers of different scales:
- Stablecoin issuers with a market capitalization exceeding $10 billion will be subject to Federal Reserve regulations.
- Stablecoin issuers with a market capitalization below $10 billion will be regulated by state governments.
According to CoinGecko data, currently only Tether (USDT) and Circle's USD Coin (USDC) have a market capitalization exceeding $10 billion, meeting the federal regulatory standards of this bill.
Additionally, Stablecoin issuers will be required to provide monthly audited reserve reports, and could face criminal penalties for submitting false information.
Bill Advancement and Government Support
FOX Business reporter Eleanor Terrett stated on X that Senate staff expect the bill to move quickly through the committee review process.
On the other hand, at the February 4 press conference, White House AI and Cryptocurrency Policy Advisor David Sacks explicitly stated that the government intends to push for Stablecoin legislation in the coming months. David Sacks emphasized:
"Stablecoins can ensure the dominance of the US Dollar internationally, increase the digital usage of the US Dollar as a global reserve currency, and create tens of trillions of dollars in potential demand for US Treasuries."
Currently, the global Stablecoin market has a total market capitalization of $227 billion, and crypto asset management firm Bitwise forecasts that the Stablecoin market will grow to $400 billion by the end of 2025.
