Legislators and Regulators Applaud Passage of the GENIUS Act

Regulators and legislators hailed the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (“GENIUS Act”).

As previously covered, the bill: (i) "establish[es] a framework for issuing and redeeming payment stablecoins;" (ii) "require[s] stablecoin issuers to maintain reserves on a 1:1 basis composed of assets such as US currency, Treasury bills and demand deposits;" (iii) "prohibit[s] non-approved entities from issuing stablecoins;" and (iv) provides for "regulatory oversight [by] federal and state financial regulators, with the Federal Reserve, the OCC and the FDIC serving as primary regulators." 

SEC Chair Paul Atkins SEC praised the passage of the Act which he called "a historic milestone" for market participants, crypto entrepreneurs and everyday Americans. He highlighted the transformative potential of blockchain and crypto assets to bring "new efficiencies, cost reductions, transparency, and risk mitigation" to America's financial system. He said the GENIUS Act offers the "clear rules of the road" innovators need to deliver stablecoin solutions that make transactions faster, cheaper and safer. He called financial innovation critical to keeping the US "the best and most secure place" to invest and said the GENIUS Act gives the crypto industry clear rules to grow. 

CFTC Acting Chair Caroline D. Pham said the passage of the Act is a "significant milestone" which "will open a new chapter in financial services." 

Senate Banking Committee Chair Tim Scott stated: "digital assets and blockchain technology are here to stay, and it's past time our regulatory framework acknowledges this reality." He said he looks forward "to taking a similar approach to get digital asset market structure legislation signed into law."

Democratic Senator Kirsten Gillibrand emphasized that the bill was "a result of serious bipartisan negotiations," that act "will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar." She also emphasized that the bill "targets illicit finance, places limitations on Big Tech, puts in place ethical guardrails, and strengthens national security." 

House Financial Services Chair French Hill said the passage of the GENIUS Act marks "a historic day for American innovation and consumer protection as payment stablecoin legislation is now law."  

Blockchain Association CEO Summer Mersinger said the bill sets enforceable rules for stablecoins, "protects consumers, and creates space for responsible innovation under American leadership."