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Floor Speech

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Mr. HAGERTY. Mr. President, I rise today in support of my legislation, the Guiding and Establishing National Innovation for U.S. Stablecoins Act--otherwise known as the GENIUS Act.

I would like to thank Senator Gillibrand for her kind comments and her hard work in this and Senator Scott, who so ably chaired our committee. And I am very pleased to say that we are at a point now where America can actually see a comprehensive and clear regulatory framework come to bear for payment stablecoins.

For too long, the lack of any such framework has forced digital asset innovation beyond our borders here in America and into foreign countries. It has jeopardized our Nation's financial leadership. And frankly, as Senator Gillibrand said, it has put American consumers at risk.

Meanwhile, our slow and outdated payment rails--frankly, rails that were developed back in the 1970s and 1980s--have failed to keep pace with many other overseas jurisdictions. To modernize our payment system and to restore our Nation's competitive edge, we must act now.

That is why I have introduced the GENIUS Act. This legislation takes a commonsense, bipartisan approach to regulating stablecoins. Allow me to concisely explain what the GENIUS Act does.

It clearly defines a payment stablecoin as a digital asset pegged to a fixed value backed by U.S. Treasurys and used for transactions.

It describes clear procedures for institutions to issue stablecoins. It establishes a regulatory regime that balances the responsibilities of both Federal and State authorities.

It implements standards that ensure safety, stability, and consumer protection. And it provides rigorous safeguards to deter illicit activity, to increase transparency, and to aid the vital work of law enforcement.

These provisions are pragmatic and forward-looking. They both protect consumers and promote innovation. And, crucially, they represent bipartisan agreement, reflecting that both Democrats and Republicans recognize the vast potential of this emerging technology.

The benefits of stablecoin innovation are immense. By reducing friction in the payment process, they can improve the speed and the efficiency of cross-border transactions.

Faster and cheaper transactions can unlock much needed working capital for American businesses and provide individuals with more effective tools for making international payments.

Moving aspects of our payment system to the blockchain has been shown to increase efficiencies in capital markets. Innovators are constantly uncovering transformative use cases, and the rapid pace of innovation will only increase with regulatory clarity.

Stablecoins also advance a vital national interest by driving demand for U.S. Treasurys. A recent report forecasts that with a well-crafted U.S. regulatory framework, stablecoin issuers could become one of the top holders of U.S. Treasurys by the end of this decade. Frankly, it could happen even sooner.

This would strengthen our fiscal position and cement the dollar status as the world reserve currency. If we fail to act now, not only will these benefits slip away, we will also fall behind in global competitiveness.

Without a regulatory framework, stablecoin innovation will proliferate overseas and not in America. And if we fail to act, Americans using this new technology will be left with no choice but to rely on foreign stablecoins that lack vital consumer protections. And, critically, inaction would surrender our leadership to the Chinese Communist Party, a party that aggressively advances its own digital currency.

We can avoid this outcome, but only if we all unite behind this legislation. In the spirit of patriotic cooperation, I want to thank Senator Scott, Senator Lummis, Senator Gillibrand, and Senator Alsobrooks who cosponsored an earlier iteration of this bill and who have worked hard with me every step of the way to make this a strong bipartisan effort.

And I also extend gratitude to my colleagues on both sides of the aisle who supported this legislation in the Banking Committee and contributed to the consensus product that we now see before the U.S. Senate. We have an opportunity to cement America's financial dominance for decades to come and demonstrate that this body can come together and pass legislation that benefits our country and its citizens.

I urge all my colleagues to join me in advancing the GENIUS Act. And I urge those watching from afar to view this critical vote for what it is, a statement of support for a vital innovative technology and a demonstration of our willingness as a body here in the U.S. Senate to work for America.

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