U.S. Senate, Stablecoin regulation ‘Genius Act’ partially amended…Foreign issuers also included under U.S. supervision

The Stablecoin regulation bill (GENIUS Act) introduced in the United States Senate has been partially amended, significantly expanding its regulatory scope. According to Unchained, as the GENIUS Act failed to be presented to the plenary session, it was revised to include provisions that require foreign stablecoin issuers to be subject to supervision by U.S. regulatory authorities if they provide services within the United States.

The core of this amendment is the provision that all stablecoins serviced within the United States, regardless of the location of the issuer, must be under the control of U.S. regulatory agencies. As a result, foreign issuers like Tether will also be subject to U.S. regulatory oversight and must comply with U.S. law.

Furthermore, the amended GENIUS Act significantly expands the definition of digital asset service providers. Previously limited to simply issuers, the definition now includes developers, validator node operators, and self-custody wallet service providers, who also must comply with Anti-Money Laundering (AML) obligations.

The basic framework of the GENIUS Act is to assign licensing, 100% reserve requirements, and disclosure obligations to stablecoin issuers. With this amendment, the regulatory scope expands to a global level, interpreted as an attempt by the United States to set international standards in stablecoin management.

Industry experts predict that if this amendment passes, global stablecoin issuers may significantly reorganize to fit U.S. regulations. In particular, attention is on how large issuers like Tether will change their approach to the U.S. market. Additionally, with self-custody wallets included as regulatory targets, it is expected that the traceability of individual investors' transactions will increase.