The US is currently prioritising a stablecoin-focused bill as part of its broader effort to establish a comprehensive regulatory framework for the crypto industry. Known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, the proposed legislation seeks to introduce clear guidelines for the issuance and management of stablecoins—cryptocurrencies that are pegged to the value of reserve assets such as fiat currencies or gold. Recently, Senator Elizabeth Warren emphasised the need for stablecoin regulations to prevent private companies from creating their own versions of the US dollar.Earlier this week, the bill was approved by the House Financial Services Committee, advancing it to the House of Senate for the final approval. The crypto industry lauded the development, calling it a milestone moment for the sector's recognition.Paul Atkins, the chief of SEC's Crypto Task Force, has shown a strong support to the GENUIS Bill. Atkins, in an interview with CNBC said, “We have every expectation now that it's going to pass."As momentum builds around the GENIUS Act, let's take a closer look at what this proposed legislation could mean for the future of the stablecoin sector.GENIUS Bill: Key DetailsThe GENIUS bill was first introduced to the US lawmakers in February this year. Tim Scott, the Chairman of the Senate Banking Committee, is among the four sponsors of the proposed laws.Outlining the ambitions of this legislations, its sponsors said that the rules would establish clear protocols to guide the issuance of stablecoins in the US. Institutions like Meta that may seek licences to issue stablecoins will have to comply with these mandates.The rules will define reserve requirements for existing and potential stablecoin issuers, while also setting up regimes on the supervision, examination, and enforcement of stablecoin-producing businesses.Large-scale stablecoin issuers offering tokens worth $10 billion or banking firms are proposed to be under a strict oversight by the Federal Reserve (for banks). Meanwhile, large-scale non-bank entities will be monitored by the Office of the Comptroller of the Currency under, if the bill gets approved into an Act by the Senate.The states may individually get the right to regulate smaller stablecoin issuers internally.According to Senator Bill Hagerty, "The previous administration's hostility toward crypto and refusal to provide clear regulatory guidelines have severely stifled stablecoin innovation." He believes that this legislation can preserves a strong state pathway to stablecoin issuance.The US House Financial Services Committee passed the stablecoin bill in April.Stablecoin HypeThe US is among many nations that are now viewing stablecoin as a blockchain-based solution to quick, secure, and cheap cross-border transfers.Scott, the US Senate Banking Committee chief, sees stablecoins as a major advancement in the financial sector.“Stablecoins enable faster, cheaper, and competitive transactions in our digital world and facilitate seamless cross-border payments,” he said. "From enhancing transaction efficiency to driving demand for US Treasuries, the potential benefits of strong stablecoin innovation are immense."US President Donald Trump himself is part of issuing the USD1 stablecoin, indicating support to the sector's potential.While the stablecoin bill is still making its way through the legislative process in the US, Hong Kong passed its own stablecoin bill on May 21 that is slated to come into effect within this year.Traditional fintech giants like Visa, Mastercard, and PayPal are also exploring service offerings related to stablecoins.Among blockchain majors, Polygon plans to concentrate on its stablecoin plans this year, owing to "rising institutional demands".A recent report by Standard Chartered estimated that the size of the stablecoin market could surge by about 10-fold to $2 trillion (roughly Rs. 1,71,29,830 crore) within the next three years. For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube. Further reading: Cryptocurrency, Stablecoin, Genuis Act, US Radhika Parashar Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More Related Stories