Revised GENIUS act expands U.S. oversight to foreign stablecoin issuers

The GENIUS Act, a bill regulating stablecoins introduced in the U.S. Senate, recently failed to advance to formal debate, Unchained reported. A newly uncovered version of the bill contains significant revisions, the most notable being an expansion of U.S. regulatory jurisdiction to include foreign stablecoin issuers such as Tether, requiring them to comply with U.S. law if they provide services to American users. The revised legislation also broadens the definition of “digital asset service providers” to encompass developers, validator nodes and self-custody wallet operators, thereby subjecting these entities to anti-money laundering (AML) obligations. These provisions could have far-reaching consequences for the decentralized finance (DeFi) ecosystem. Still titled the GENIUS Act, the updated bill maintains key provisions from earlier drafts, including licensing requirements, full reserve backing and mandatory disclosures for stablecoin issuers. Now backed solely by Republican senators, the bill may face legislative obstacles without bipartisan support, but it remains a prominent proposal with the potential to define the regulatory landscape for stablecoins in the U.S.