United States Senator Bill Hagerty introduced an updated version of the GENIUS Act before a Senate Banking Committee vote scheduled for March 13.
The revised bill aims to strengthen regulatory standards for stablecoin issuers, enhancing consumer protections, reserve requirements, and oversight measures.
One of the most significant changes in the updated GENIUS Act is its tougher stance on non-U.S. stablecoin issuers. The bill imposes what Web3 app founder Dom Kwok described in a March 11 X post as “extra high standards” for reserves, liquidity, and compliance checks. Industry analysts suggest that this move could give U.S.-based issuers like Circle and Ripple a competitive advantage by setting higher benchmarks for foreign competitors.
The revised GENIUS Act maintains its core framework by subjecting stablecoin issuers with a market cap over $10 billion to Federal Reserve supervision while allowing smaller issuers to remain state-regulated. It introduces stronger enforcement mechanisms and risk controls to enhance compliance and financial stability. Senate Banking Committee Chairman Tim Scott emphasized the significance of stablecoins in modern finance for facilitating efficient transactions and cross-border payments, asserting that the legislation will promote innovation and strengthen the U.S. dollar’s global position.
The revised bill, shaped through bipartisan collaboration among lawmakers, industry stakeholders, academics, and regulators, aims to balance innovation with financial stability. The Senate Banking Committee will vote on the bill on March 13. It will proceed to a full Senate vote and then to the House if approved. If both chambers approve the measure, President Donald Trump’s final approval or a potential veto will come.
However, not everyone is optimistic about the bill’s potential impact. Matt Hougan, Chief Investment Officer at Bitwise, expressed skepticism about traditional financial institutions’ ability to capture significant market share in the stablecoin sector. He voiced his doubts, suggesting that major banks may struggle to compete effectively despite regulatory advancements.
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