The U.S. Senate is taking another step towards stablecoin regulation with the introduction of a new bill by Senator Bill Hagerty.
The legislation aims to create a regulatory framework for the issuance of dollar-backed stablecoins and marks a new step in Congress to bring oversight to the growing digital asset sector.
Hagerty’s proposal, titled the Driving and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act, aims to define payment stablecoins and create a structured approach to their issuance, according to a source familiar with the matter. The bill would designate the Fed as the primary regulator for large bank-issued stablecoins, while the Office of the Comptroller of the Currency (OCC) would oversee non-bank issuers with assets exceeding $10 billion.
State regulators will maintain oversight for smaller issuers, with larger firms having the option to seek federal waivers.
The initiative represents a significant shift from previous stablecoin efforts in 2024, which faced obstacles under the leadership of former Senate Banking Committee Chairman Sherrod Brown. Brown lost his bid for re-election in November, paving the way for renewed bipartisan talks. This time, Hagerty’s bill has the support of Senate Banking Committee Chairman Tim Scott and Senator Cynthia Lummis, who chairs the panel’s digital assets subcommittee. Lummis said she is “working to get this bill to the president’s desk.”
Despite this momentum, the bill’s success remains uncertain as bipartisan negotiations continue. A key challenge in previous talks has been determining the balance of regulatory power between federal and state officials. It remains to be seen whether Hagerty’s revised approach will win Democratic support, especially given his softer regulatory stance.
The House of Representatives had previously passed a stablecoin surveillance bill in the last congressional session, but it stalled in the Senate.
*This is not investment advice.
