- The GENIUS Act aims to regulate stablecoins and boost the U.S. dollar dominance.
- Bo Hines believes the stablecoin legislation process is set to be finalized soon.
- The Presidential Working Group has made significant progress in digital asset regulation.
Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, expressed optimism regarding the future of stablecoin legislation. Speaking at the Digital Asset Summit held in New York, on Tuesday, he said that the stablecoin legislation “is an imminent thing” following the Senate Banking Committee’s approval of the GENIUS Act. The bill seeks to establish a framework for stablecoin issuance while promoting innovation, consumer protection, and financial stability. Considering the bipartisan support in the Senate, Hines stressed that the legislation could reach the President’s desk within 2 months.
GENIUS Act Clears Senate Banking Committee
The GENIUS Bill, or the Guiding and Establishing National Innovation for the US Stablecoins Act, passed the Senate Banking Committee garnering maximum support. The bill presents a framework for stablecoin issuance in the U.S., ensuring industry players have clear guidelines while supporting the stability of the U.S. dollar in the digital economy.
Hines emphasized that the Act not only clarifies regulatory responsibilities but also strengthens the dollar’s role as the leading currency in the digital space. The bipartisan support for the GENIUS Act gives strong momentum to the legislation, making it a law shortly.
Regulatory Progress and Key Milestones
Furthermore, Hines highlighted remarks from the Presidential Working Group on Digital Assets, which was established following President Trump’s executive order on January 23. The group’s intent was to develop a regulatory framework to enhance innovation in the cryptocurrency industry while providing market participants with regulatory clarity. Further, Hines stated that the group has already made significant progress, starting with the completion of reports outlining the regulatory actions of the digital assets authority.
As part of its 60-day landmark, the group is expected to release its recommendations on March 24. This will be followed by the 120-day landmark wherein it will include a report detailing the actions taken by regulators and identifying steps to remove barriers to secure innovation. This regulatory process is expected to set the groundwork for a stablecoin framework that could be finalized by 2025.
Related: Stablecoin Market Cap Hits $219B, Growing Closer to Ethereum
Global Impact and Future Outlook
Tether currently holds the largest market share globally, growing with Circle’s USDC in second place. With increased scrutiny from international regulators, especially in Europe, the pressure on stablecoin issuers to comply with the regulations has intensified. Recently, several exchanges have delisted non-compliant stablecoins in response to Markets in Crypto Assets (MiCA) regulations in Europe. However, the federal government is keen to make sure that its regulatory framework does not hold back the growth in developing digital assets.
