On March 18, 2025, Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, told attendees at the Digital Asset Summit in New York that a U.S. stablecoin bill could reach President Donald Trump’s desk by mid-May—within two months. The announcement follows the Senate Banking Committee’s bipartisan approval of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on March 13, 2025, with an 18-6 vote in Washington, D.C. The legislation now heads to the full Senate, needing 60 votes to pass, then to the House for reconciliation with its own stablecoin proposal.
Hines, a key figure in Trump’s crypto policy team, said the GENIUS Act aims to regulate payment stablecoins—digital currencies pegged to the U.S. dollar used for transactions or settlements. The bill cleared the Senate Banking Committee last week, marking a significant step after months of bipartisan talks led by Senators Bill Hagerty, Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks. Introduced on February 4, 2025, and updated on March 10, the Act reflects input from industry, academics, and regulators.
What’s in the GENIUS Act?
The GENIUS Act lays out a detailed framework for stablecoin issuers. Here are the key points:
- Reserve Requirements: Issuers must back every stablecoin 1:1 with U.S. dollars or high-quality liquid assets, like Treasury bills or short-term repurchase agreements. Monthly reserve reports, audited by third parties, must be public, with CEOs and CFOs certifying accuracy under penalty of law.
- Dual Oversight: Stablecoin issuers with over $10 billion in market cap fall under federal regulators, such as the Federal Reserve or the Office of the Comptroller of the Currency. Smaller issuers—under $10 billion—can opt for state regulation if the state meets federal standards. States must certify their rules annually to the Treasury Secretary, or their issuers shift to federal control.
- AML and KYC Rules: Issuers are classified as financial institutions under the Bank Secrecy Act, requiring anti-money-laundering (AML) and know-your-customer (KYC) compliance. This includes monitoring for illicit activity and reporting suspicious transactions. The Act also allows regulators to block assets of foreign entities if ordered by the Treasury or a court.
- Transparency and Redemption: Issuers must publish clear redemption policies and ensure timely access to funds for holders. Companies with over $50 billion in issuance, not registered with the SEC, face annual financial audits, covering related-party dealings.
- Enforcement Powers: Federal regulators can issue cease-and-desist orders, impose fines, or halt stablecoin issuance for violations. In emergencies, the Fed or Comptroller can intervene with state-regulated issuers on two days’ notice. Non-compliant foreign stablecoins face U.S. blacklisting.
- Scope Limits: The Act excludes interest-bearing stablecoins—likely treating them as securities elsewhere—and bans unauthorized issuers from calling their tokens “cash equivalents” for accounting or settlement purposes.
Hines emphasized the bill’s potential to bolster the U.S. economy and the dollar’s role in the $230 billion stablecoin market, where dollar-pegged tokens dominate. “This could reshape payment systems and financial markets,” he said, noting the market’s current undervaluation of the legislation’s impact.
Treasury Secretary Scott Bessent, speaking at the White House Crypto Summit on March 7, 2025, reinforced this view. “Stablecoins are a tool to keep the U.S. dollar the world’s reserve currency,” he said. “President Trump has directed us to make this a priority.”
A Path to Tyranny?
Supporters of the GENIUS Act hail it as a boost for dollar dominance and regulatory clarity. Yet its rules spark concern. All cryptocurrency transactions, including stablecoins, live on public blockchains—already trackable by design. The Act adds AML compliance and tools for regulators to monitor and freeze them, hinting at tighter control over digital cash. It doesn’t outright demand tracking every move, but the setup could erode financial privacy. Freedom advocate see it as a step toward killing cash entirely, leaving every transaction under the surveillance of a government that conveniently black-holes trillions by failing to utilize systems that document their own transactions.
The bill now faces a full Senate vote, needing 60 yeses, then House talks to sync with its STABLE Act. If it passes, the GENIUS Act will redefine digital currency use—and oversight—in the U.S.
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