United States Senator Bill Hagerty has put forth an updated version of the Guiding and Establishing National Innovation for US Stablecoins Act in anticipation of a crucial Senate Banking Committee vote scheduled for March 13.
The latest iteration of the bill, as announced on March 10, aims to reinforce regulatory standards for stablecoin issuers by enhancing rules on consumer protections, reserve requirements, and oversight. One notable change is the imposition of stricter regulations on non-US stablecoin issuers, with heightened standards for reserves, liquidity, and compliance checks. This adjustment is anticipated to give US-based issuers such as Circle and Ripple a competitive edge in the market.
While the fundamental framework of the bill remains unchanged – placing issuers with a market cap exceeding $10 billion under Federal Reserve supervision while allowing smaller issuers to remain state-regulated – it now includes enhanced enforcement mechanisms and risk controls to ensure compliance and financial stability.
Senate Banking Committee Chairman Tim Scott emphasized the significance of stablecoins in enabling faster, cheaper, and more competitive transactions, as well as facilitating seamless cross-border payments. The updated legislation aims to foster innovation and growth within the industry in the United States while bolstering the global standing of the US dollar.
The revised bill has benefited from bipartisan collaboration, with lawmakers collaborating closely with industry stakeholders, academics, and regulators to fine-tune its provisions. The Senate Banking Committee is slated to vote on the bill on March 13, after which it will proceed to a full Senate vote for further deliberation before potentially advancing to the House for consideration.
If approved by both chambers of Congress, the legislation will then be presented to President Donald Trump for final approval or veto. In a prior development, Hagerty introduced the GENIUS Act in February 2025, which mandates that stablecoins must be fully backed by U.S. Treasury bills, U.S. dollars, or Federal Reserve notes.
The stablecoin market has witnessed significant growth in recent years, evolving from a niche sector into a multi-billion-dollar industry. According to a report from OurNetwork, stablecoins now constitute over 1% of the US dollar M2 money supply, underscoring their increasing prominence in the financial landscape.