Senator Bill Hagerty will present a bill Tuesday to establish a framework for stablescoins, a type of cryptocurrency which remains stable by being supported by the US dollar or other assets.
The bill is called the guide and the establishment of national innovation for American stables, or Genius Act. Senators Kirsten Gillibrand, Tim Scott and Cynthia Lummis also support him.
According to Hagerty, it aims to provide a foreseeable regulatory framework that encourages innovation and supports President Donald Trump’s objective to make the United States a crypto leader.
The legislation describes the rules for the emission of stablecoin payments. It requires that stablecoin payments be supported with species, cash bills or other safe assets. Companies issuing stablescoins must also submit monthly audited reports on their reserves, with penalties for false reports.
The Stablescoin market has reached a value of $ 205 billion by the end of 2024. The market is mainly dominated by the cryptocurrency company Tether Holdings Ltd., and Cantor Fitzgerald, owned by the Secretary of Commerce entering Howard Lungick, has a participation in Tether.
The bill would oblige stable issuers to submit monthly audited reports on their reserves. Providing false information would cause criminal sanctions.
The regulators have raised concerns about whether Stablecoin issuers, such as USDT de Tether, have enough reserves to manage significant withdrawals during market stress. Non -banking Stablecoin issuers would be regulated by the currency controller office (OCS), a Bureau of the Treasury Department.
Trump promised to support cryptographic industry by reducing regulations and appointing cryptographic user -friendly officials. Trump doubted Crypto once, but he changed his position in the 2024 elections when crypto leaders supported his campaign. Last month, Trump published a decree to promote the progress of digital assets in the United States
He also ceased to work on a digital currency of the central bank (CBDC), which some consider a rival of Stablecoins. Although his order has created a group to suggest new crypto rules, Congress must approve any real change in policy. Democrats and Republicans are interested in establishing Stablecoin regulations.
Trump’s approach is very different from former President Biden, who was skeptical about the crypto and focused more on surveys and application rather than the creation of clear rules.
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