New U.S. Senate Bill Seeks to Regulate Stablecoins—Here’s What’s Inside

• The U.S. Senate’s GENIUS Act aims to create clear rules for stablecoin regulation, impacting major issuers like USDT and USDC.
• Stronger stablecoin oversight could boost crypto market confidence, potentially influencing Bitcoin’s growth.

A new push for crypto regulation is underway in Congress, with Senator Bill Hagerty unveiling a bill to establish a U.S. framework for stablecoin oversight. Set for introduction on Tuesday, this legislation is designed to create clear rules for the issuance of dollar-pegged tokens, providing a crucial structure for the fast-growing stablecoin market.

In his recent tweet on X, Hagerty responded to the news by Bloomberg, stating that he is  introducing the GENIUS Act,—the latest push to create crypto-friendly guidelines for an industry that’s becoming a priority for Donald Trump.

Today, I’m introducing the GENIUS Act w/ @SenatorTimScott, @SenGillibrand, & @SenLummis, a bill that establishes a clear regulatory framework for stablecoins.
 
I look forward to working with @RepFrenchHill and @FinancialCmte to get it to the President’s desk and signed into law. https://t.co/8dz0HnYrLG

— Senator Bill Hagerty (@SenatorHagerty) February 4, 2025

The GENIUS Act: What’s Inside?

The bill, named the Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act, aims to define payment stablecoins and establish clear procedures for issuing them.

The Federal Reserve would oversee stablecoin issuers linked to major banks. Non-bank issuers handling over $10 billion would fall under the jurisdiction of the Office of the Comptroller of the Currency (OCC). Lastly, Smaller stablecoin issuers would be regulated by state authorities, though larger firms could apply for waivers.

A significant part of the bill focuses on ensuring that issuers maintain proper reserves, a key factor in maintaining the stability of popular stablecoins like Tether (USDT) and Circle’s USDC.

Bipartisan Support Needed & Bitcoin’s Price Update

While Hagerty’s bill has gained support from Republicans, its lighter regulatory approach may face challenges with Democrats, who have historically pushed for more stringent measures. Whether the bill can secure bipartisan supportremains uncertain, but Hagerty is optimistic about advancing the legislation.

Additionally, CNF’s previous update reported that the crypto industry received a significant boost as Senator Tim Scott, the incoming Republican chair of the U.S. Senate Banking Committee, confirmed alignment with President-elect Donald Trump on crypto regulation.

With stablecoin regulation on the horizon, Bitcoin’s price could be indirectly affected. Since stablecoins serve as a bridge between fiat and crypto, any regulation that strengthens their credibility could boost confidence in the broader crypto market, potentially benefiting Bitcoin (BTC) and other major cryptocurrencies.

According to CoinMarketCap data, as of the time of writing, Bitcoin (BTC) is priced at $98,156.45, down 2.22% in the past day and 3.84% over the past week. Investors often view the regulatory environment as a key factor in price stability, and clear guidelines could encourage more institutional investment, supporting Bitcoin’s long-term growth trajectory.