United States Senator Bill Hagerty has introduced an updated version of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, strengthening regulatory standards for stablecoin issuers. The revised bill comes ahead of a key Senate Banking Committee vote on March 13 and aims to enhance consumer protections, reserve requirements, and oversight.
Stronger Regulatory Standards and Enforcement
According to a March 10 announcement, the updated GENIUS Act introduces stricter rules for non-U.S. stablecoin issuers, imposing what Web3 app founder Dom Kwok described as “extra high standards” for reserves, liquidity, and compliance checks. This move is expected to provide a competitive advantage for U.S.-based issuers like Circle and Ripple, reinforcing the dominance of U.S.-regulated stablecoins in the global market.
While the bill maintains its original structure—placing stablecoin issuers with over $10 billion in market capitalization under Federal Reserve supervision while allowing smaller issuers to remain state-regulated—it now includes enhanced enforcement mechanisms and stronger risk controls to ensure compliance and financial stability.
Bipartisan Support and Industry Collaboration
The revised legislation has been shaped through bipartisan input, with lawmakers collaborating with industry stakeholders, academics, and regulators to refine its provisions. The bill emphasizes stablecoins’ role in improving financial transactions, with Senate Banking Committee Chairman Tim Scott stating:
“Stablecoins enable faster, cheaper, and competitive transactions and facilitate seamless cross-border payments. This legislation will ensure the industry can innovate and grow here in the United States while promoting the U.S. dollar’s global position.”
Next Steps for the GENIUS Act
The Senate Banking Committee will vote on the bill on March 13. If approved, it will proceed to a full Senate vote, where lawmakers will debate its provisions before sending it to the House of Representatives. Should both chambers pass the bill, it will be sent to President Donald Trump for final approval or a veto.
Stablecoins’ Growing Role in the Financial System
Since its introduction in February 2025, the GENIUS Act has been a focal point of stablecoin regulation. A key provision in the legislation mandates that all stablecoins must be fully backed by U.S. Treasury bills, U.S. dollars, or Federal Reserve notes, ensuring financial security and regulatory compliance.
Meanwhile, stablecoins have grown from a niche financial tool into a multi-billion-dollar industry. A February report from OurNetwork revealed that stablecoins now account for over 1% of the U.S. dollar M2 money supply, highlighting their increasing importance in global finance.
With the stablecoin market expanding rapidly, regulatory clarity through the GENIUS Act could play a crucial role in shaping the future of digital assets and financial innovation in the United States.
