Senate bank committee to vote for two -part ‘Genius’ Stablecoin Bill this week

This week, the US Senate Bank Committee is planning to vote for a dual bill aimed at regulating stablecoins and improving consumer protection.

Entered By senators Bill Hagerty (R-TN) and Tim Scott (R-SC), the Genius Act tries to clarify the regulatory framework for stablecoins In the US, with provisions that relate to reserve requirements, audits, transparency and licenses for issuers.

If adopted on Thursday, the legislation Would offer a clear path for Stablecoin and the crypto policy of President Donald Trump further promotes, while the US attempts to strengthen the clarity of the regulations for industry.

“From improving transaction efficiency to stimulating the demand for American treasury, the potential benefits of strong stablecoin innovation are huge,” said Senator Hagerty in a statement.

“My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and promote the president’s mission to make America the world capital of crypto,” he said.

The law enables Stablecoin -Emitents to choose federal or national charters based on market capitalization. It also introduces “reciprocity” agreements, in which foreign issues must meet American standards for reserves, anti -money laundering provisions, sanctions and liquidity sanctions.

“The reserve requirements, anti-money laundry requirements, all are neat for RLSUD and USDC.” written On X on Monday, pointing to Empendent Ripple and Circle while they echo sentiment shared By others in the crypto community.

He added that the account could require E -Pendents to meet future orders that can instruct them to “grab, freeze, burn or prevent digital assets and bills with” reasonable special feature “.

That would give us the authority to control digital assets within their jurisdiction and place additional operational costs on existing issues.

Another of the most important provisions of the bill is the focus on foreign stablecoins.

These provisions can be well in accordance with the American Stablecoins, such as Circle’s USDC and Ripple’s RLUSD, who are domiciled in the US and claim that they already meet many of the requirements of the bill.

This can offer a head start on foreign expenses, such as Connect (USDT), the world’s largest stablecoin -mittent through market capitalization, which Make some arguing May have trouble adapting.

Tether, currently located in Bitcoin-friendly El Salvadorhas no formal American presence and has traditionally supported its USDT Stablecoin with a mix of assets, including BitcoinUS Treasury Bills and Corporate Paper.

Many of Tether’s reserves, in particular the Bitcoin companies, may not meet the new compliance standards, according to a recent Report from JP Morgan.

That could lead to parts of his Bitcoin reserves to comply with the American regulations, a movement that can be liquidated by his PEG to the US dollar, is the report.

In an attempt to remove those worries, the company has appointed A new Chief Financial Officer to continue with his plans for a complete audit, a long -term dispute by observers who are critical of how the company manages its activities.

It is hoped that Simon McWilliams, an experienced financial director with more than 20 years of experience, will contribute to Tether’s History of Quarterly Attrestations via Auditing Firm BDO.

Yet it is not yet clear how quickly E-Pendents will adapt to the proposed changes, because many are dependent on a largely unregulated market to promote acceptance and to develop their companies into multi-billion dollar companies.

Published by Sebastian Sinclair