WASHINGTON, Feb. 27 -- Sen. Jack Reed issued the following press release:
Last year, Congress passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to place the government's stamp of approval on "stablecoins," digital assets designed to maintain a stable value of $1. For every stablecoin in circulation, the company issuing the stablecoin must maintain an equivalent amount of real dollars or liquid assets in a reserve fund to meet investors' requests to get their money back upon demand.
But due to a major loophole in the GENIUS Act, foreign stablecoin giants like Tether -- which is headquartered in El Salvador and handles about 60 percent of the more than $300 billion stablecoin market -- can operate wit...