Senator Bill Hagerty is set to introduce the GENIUS Act, a bill aimed at creating a clear regulatory framework for stablecoins in the US. The legislation is co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, with a focus on ensuring all stablecoins are backed by US Treasury bills, dollars, and Federal Reserve notes.

The bill follows previous efforts in Parliament to regulate stablecoins, aligning with similar proposals from both the House and Senate. Supporters argue that regulatory clarity is crucial for the rapidly expanding market, with Tether's USDT and Circle's USDC currently dominating the sector. Lawmakers believe the move will help position the US as a global leader in cryptocurrency innovation.

A key requirement of the bill is for issuers to conduct and publish monthly audits to ensure transparency and financial stability. Senator Hagerty has pledged to work closely with House Financial Services Committee chair Rep. French Hill to advance the bill, aiming to bring it to President Trump's desk for approval.