Washington, D.C. – Today, U.S. Senator Catherine Cortez Masto (D-Nev.) released the following statement after voting to pass the GENIUS Act, which would create a new regulatory framework for payment stablecoins and incentivize stablecoin issuers to be headquartered in the U.S., while providing a roadmap for more robust regulations and consumer protections. This iteration of the bill includes hard-fought changes negotiated by Democrats to strengthen national security and encourage domestic industry growth.
“We need to do more to regulate cryptocurrencies and support American businesses, consumers, and our national security,” said Senator Cortez Masto. “If Congress doesn’t act, we risk sidelining ourselves in favor of foreign countries who would gladly take our place in helping shape this growing sector. This bill is the first step to ensure stablecoins issued in the United States are not used to scam or defraud people or facilitate illicit finance, while also providing regulatory clarity our domestic industry needs to innovate here at home.”
The updated GENIUS Act includes Senator Cortez Masto’s language to ensure payment stablecoin issuers can only issue, redeem, and manage reserves to back up their stablecoins. This change bans issuers from engaging in speculative and high-risk ventures that could increase the likelihood of a failure.
The negotiated legislation also increases scrutiny for foreign stablecoin issuers, giving Treasury the power to ban shady offshore actors from trading in the U.S. on centralized exchanges. It cracks down on deceptive marketing, allows for the suspension of an issuer’s registration after reckless and willful noncompliance, and prohibits stablecoin issuers from automatically accessing Federal Reserve Master accounts.
Senator Cortez Masto has consistently supported measures to rein in big corporations and crack down on fraud and money laundering. She is also pushing for additional legislation to crack down on crypto corruption by banning the President, Vice President, Senior Executive Branch Officials, Members of Congress, and their immediate families from financially benefiting from issuing, endorsing, or sponsoring crypto assets, such as meme coins and stablecoins.
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