Share this article
Latest Draft of U.S. Stablecoin Bill Aims to Split Power Between State and Federal Authorities
The latest version of the bill expands the role of states in regulating stablecoins and proposes new transparency as well as enforcement requirements
Updated Mar 11, 2025, 8:48 a.m. Published Mar 11, 2025, 6:32 a.m.
What to know:
- The latest draft of the GENIUS Act proposes a shift in stablecoin oversight, dividing it between state and federal authorities, and introduces new enforcement and transparency requirements for issuers.
- States can now oversee stablecoin issuers with a market cap of up to $10 billion, and larger issuers can remain under state supervision if they meet specific criteria.
- The updated bill mandates stablecoin issuers to publish monthly liquidity reports, comply with orders to freeze transactions, and establishes them as financial institutions for anti-money laundering purposes.
The latest draft of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, introduced before a hearing Tuesday, proposes a significant shift in the approach to stablecoin oversight.
The draft wants to split stablecoin regulation between state and federal authorities, while also introducing new enforcement and transparency requirements for issuers.
STORY CONTINUES BELOW
The GENIUS Act is sponsored by Senators Bill Hagerty (R-TN), Tim Scott (R-SC), Chairman of the Senate Banking Committee, Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY), and Angela Alsobrooks (D-MD). It was first introduced by Hagerty in February.
One of the most notable changes is the increased threshold for state regulatory authority over stablecoins.
States would now be allowed to oversee stablecoin issuers in collaboration with federal authorities with a market cap of up to $10 billion, giving them greater power in regulating a larger portion of the stablecoin market.
The newest draft of the bill also includes a waiver process, allowing larger issuers to remain solely under state supervision if they meet specific criteria.
To get a waiver and remain under state supervision, stablecoin issuers must demonstrate strong capital, a good track record, and be supervised by what the bills calls an experienced state regulator.
The updated bill also introduces new transparency and disclosure requirements for issuers. Issuers would be required to publish monthly liquidity reports detailing the composition of their reserves, including the total number of outstanding stablecoins.
Under the latest version of the bill, reserves are required to be U.S. currency, demand deposits, Treasuries, or other "approved assets."
Stablecoin issuers would also be required to create mechanisms that would allow them to comply with orders to freeze transactions, and grants the Secretary of the Treasury the authority to block and prohibit transactions involving stablecoins issued by foreign persons or entities.
While earlier versions of the bill did have provisions related to enhanced know your customer (KYC) and anti money laundering (AML) requirements, the updated version of the bill explicitly designates stablecoin issuers as financial institutions for AML purposes requiring them to establish compliance programs and conduct due diligence on high-value transactions.
The bill now awaits amendments by the Senate Banking Committee before a referral to the full Senate for debate and a final vote.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
U.S. Senate's Crypto Market Structure Bill Gets Messy as Calendar Weighs Down
The White House has shut down proposals, and lawmakers are circulating the Democrats' asks in what had been a close negotiation, revealing 11th-hour pressure.
What to know:
- Democrats shared a response to Republicans outlining their continuing priorities for a crypto market structure bill, which they said was intended to "reach an agreement and proceed towards a mark-up."
- The document laid out concerns with financial stability, market integrity and public officials' ability to trade and profit off of crypto, echoing concerns laid out in a framework Democrats shared in September.
- The Senate is running out of time in the Congressional calendar to hold a markup hearing — a key step toward progressing the bill — before 2025 ends.
Top Stories
