According to the US Senate Banking Committee website, Republican Senator Bill Hagerty has introduced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

The bill defines stablecoins as crypto-tokens linked to "fixed values" such as the U.S. dollar. Once the token's market value exceeds $10 billion, it falls under the supervision of the Federal Reserve. For lower-value projects, oversight responsibility lies with individual states. So far, there are only two stablecoins with a market capitalization of more than $10 billion: Tether (USDT) and Circle (USDC).

"My legislation creates a secure and growth-promoting regulatory framework that will unlock innovation and advance the president's mission to make America the world capital of cryptocurrency," said Hagerty, the bill's author.

The proposal requires stablecoin providers to submit monthly reports. Failure to do so could result in penalties. "Creating a bipartisan regulatory framework for stablecoins is critical to maintaining the dominance of the U.S. dollar and promoting responsible financial innovation," said Senator Cynthia Lummis, who supports the bill.

I’ve said it once, and I’ll say it again: this is the year for digital assets. I joined @SenatorHagerty to introduce the GENIUS Act, fulfilling @POTUS's promise to make America the capital of crypto. pic.twitter.com/1OEsfxlLIh
— Senator Cynthia Lummis (@SenLummis) February 4, 2025

In the proposal, lawmakers also promote "financial inclusion" and the strengthening of the U.S. dollar as a "world reserve currency." Further, the GENIUS Act marks the end of "the previous administration's past hostility to crypto." The proposal was introduced on the same day that "crypto czar" David Sacks first outlined his plans.

In his speech, the crypto czar emphasized that the leading position of the US must be defended. This requires a clear and transparent legal framework for crypto.