Senator Hagerty on the GENIUS Act and preserving core stablecoin provisions, as well as the importance of eliminating tax uncertainty and reducing regulatory overhead. While the bill received support from Democrats in the Banking Committee, the Senate is reviewing over 100 amendments.
More on Senator Hagerty’s Call to Advance the GENIUS Act
Senator from Tennessee Bill Hagerty made a statement on the current state of budget negotiations in Congress and the GENIUS Act legislative initiative, emphasizing tax certainty, deregulation, digital payment infrastructure, and the urgent need for action to restore market confidence.
Naturally, much of this is expected to be addressed by the GENIUS Act, which is now actively moving forward, and he insists this requires more accelerated efforts. Hagerty stressed that extending the tax package and reaching a budget agreement are essential for economic stability. He noted that delay in adoption limits the inflow of new capital commitments and creates risks for the markets:
“We need this done for the sake of the markets. We need this done for the sake of certainty.”
He pointed out that beyond reducing direct spending, it is also necessary to reduce regulatory overhead, and cited significant figures as evidence. Specifically, according to him, the regulatory overhead accumulated during the Biden administration costs American businesses $1.4 trillion annually, and eliminating these burdens would allow for reinvestment and improved after-tax returns:
“The incremental cost of the Biden regulations amounts to $1.4 trillion a year of extra compliance cost.”
Regarding the GENIUS Act, Hagerty said that the bill had received support not only from Republicans but also from several Democrats in the Banking Committee, and he reminded that after four hours of debate, five Democrats supported moving the bill to the Senate floor. Moreover, he defended the GENIUS Act against criticism from Senator Elizabeth Warren, stating that her arguments are politically motivated and do not address the substance of the initiative:
“I think this is just a red herring. It’s a distraction.”
He noted that the GENIUS Act is aimed at modernizing the payment system, enabling dollar-based transactions to occur at the same speed as securities trading, and potentially reinforcing dollar dominance:
“It would be based on the U.S. dollar that will extend dollar dominance around the world.”
At the same time, Hagerty confirmed that the Senate is reviewing more than 100 amendments to the bill’s text, but the main goal is to preserve the core stablecoin provisions and avoid overloading the legislation with unrelated additions:
“My goal is to make certain that the stablecoin legislation passes and that we avoid a situation where it gets cluttered up.”
Conclusion
Although the GENIUS Act has not yet been finalized and may undergo significant changes, its very existence and advancement at this level is already a strong signal to the entire industry.
Moreover, it is no secret that despite its dominance, the U.S. financial system and instruments are indeed severely outdated – and this type of transformation may offer a chance to maintain leadership in the 21st century.
