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Three years ago, the U.S. Department of Labor had “serious concerns,” effectively creating a ban on including cryptocurrency in 401(k) plans. But now things seemed to be shifting in the opposite direction. Last week, the U.S. Senate passed the first major legislation to regulate stablecoins, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
The GENIUS Act establishes, for the first time, federal guardrails for U.S. dollar–denominated stablecoins—digital assets pegged to the U.S. dollar to maintain a stable value—and creates a regulated pathway for private companies to issue digital dollars with the blessing of the federal government. Companies selling stablecoin assets to investors would be required to maintain robust reserves, adhere to rigorous transparency and anti-money laundering rules, and operate under enhanced regulatory supervision.
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United States Senators Bill Hagerty (R-Tenn), a member of the Senate Banking Committee, introduced the bill, co-sponsored byTim Scott (R-SC), Chairman of the Senate Banking Committee; Kirsten Gillibrand (D-NY); and Cynthia Lummis (R-Wyo). The GENIUS Act will establish a clear regulatory framework for payment stablecoins.
“Dollar-denominated payment stablecoins are digital assets pegged to the U.S. dollar,” said Sen. Hagerty. “They can improve transaction efficiency, expand financial inclusion, and strengthen the dollar’s supremacy as the world reserve currency by driving demand for U.S. Treasuries. The previous administration’s hostility toward crypto and refusal to provide clear regulatory guidelines has severely stifled stablecoin innovation. This legislation turns a new page. ...
“We’re going to have a great product that actually sets the stage for moving into a modern-day payment system into the 21st century,” he continues. “Getting us off the old system that was designed in the 1970s and 80s, making the dollar the key element in the digital arena. We’re going to be working arm-in-arm to try to help advance the entire cryptocurrency industry, the entirety of this industry, that’ll keep us on the cutting edge of the 21st century.”
“Stablecoins enable faster, cheaper, and competitive transactions in our digital world and facilitate seamless cross-border payments,” said Sen. Scott, who is Chairman of the Senate Banking Committee. “This legislation will expand financial inclusion and provide much-needed clarity to ensure the industry can innovate and grow here in the United States, while protecting consumers and promoting the U.S. dollar’s global position. I look forward to working with our colleagues … to advance this legislation to President Trump’s desk.”
Another crypto bill working its way through Congress, the Digital Asset Market Clarity Act, would split federal authority to regulate cryptocurrency based on the offer and sale of digital commodities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
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From: BenefitsPRO
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
