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United States Senator Bill Hagerty has introduced an updated version of the Guiding and Establishing National Innovation for US Stablecoins Act ahead of a key Senate Banking Committee vote on March 13.
According to a March 10 announcement, the revised bill strengthens regulatory standards for stablecoin issuers, refining rules on consumer protections, reserve requirements, and oversight.
One of the biggest shifts is its tougher stance on non-US stablecoin issuers, imposing what Web3 app founder Dom Kwok, in a March 11 X post, described as “extra high standards” for reserves, liquidity, and compliance checks. This move is expected to give US-based issuers like Circle and Ripple a “competitive advantage.”
However, while the bill’s core framework remains intact—placing issuers with over $10 billion in market cap under Federal Reserve supervision and allowing smaller issuers to remain state-regulated—it now includes stronger enforcement mechanisms and risk controls to ensure compliance and financial stability.
“Stablecoins enable faster, cheaper, and competitive transactions and facilitate seamless cross-border payments. This legislation will ensure the industry can innovate and grow here in the United States while promoting the U.S. dollar’s global position.”
Tim Scott, chairman of the Senate Banking Committee.Bipartisan input played a key role in shaping the revised bill, with lawmakers working alongside industry stakeholders, academics, and regulators to fine-tune its provisions, the announcement added.
The Senate Banking Committee is set to vote on the bill on March 13. If it clears the committee, it will move to a full Senate vote, where lawmakers will debate its provisions before sending it to the House.
Should both chambers approve the legislation, it will land on President Donald Trump’s desk for final approval or a veto.
As previously reported by crypto.news, Hagerty introduced the GENIUS Act in February 2025. A key provision in the legislation mandates that U.S. Treasury bills, U.S. dollars, or Federal Reserve notes must fully back all stablecoins.
Meanwhile, the stablecoin market has expanded from a niche sector into a multi-billion-dollar industry in recent years. According to a February report from OurNetwork, it now makes up over 1% of the U.S. dollar M2 money supply.
