In a latest development, Senator Bill Hagerty is all set to introduce legislation to establish a regulatory framework for stablecoins, representing the latest effort to promote crypto-friendly policies for an industry prioritized by Donald Trump. This signals clear regulations and a massive boost for stablecoin adoption in the U.S.
Regulatory Framework For Stablecoins
The bill is called the GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act and aims to provide clear regulations for stablecoins. The GENIUS Act sets rules for issuing stablecoin payments and requires backing with US currency, Treasury bills, Federal Reserve notes and other assets.
Stablecoins are key in connecting crypto to traditional finance, according to the bill’s draft seen by Bloomberg. Supporters believe that the federal regulation will legitimize the asset class leading to broader adoption.
