Michaela
The U.S. Senate Banking Committee has voted 18-6 to advance the GENIUS Act, a key move toward regulating stablecoins and setting clearer standards for digital currencies.
Now headed to the full Senate, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act sets out to create federal oversight for stablecoin issuers. A counterpart bill is also under review in the House, and both versions must be aligned before reaching the White House.
Senate Banking Committee Chairman Tim Scott described the bill as a significant step forward for innovation. “The GENIUS Act establishes Common Sense rules that require stablecoin issuers to maintain reserves backed one-to-one, comply with anti-money laundering laws, and ultimately protect American consumers while promoting the U.S. dollar’s strength in the global economy,” Scott said.
The Senate Banking Committee’s approval of the bill marks an initial move toward the regulatory clarity long sought by the crypto industry.
The bill must still pass votes in both the House and Senate before reaching President Donald Trump for approval and potential enactment into law.
Senate Advances GENIUS Act Amid Regulatory Debate
Introduced in February 2025 by Senators Bill Hagerty, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, the GENIUS Act classifies payment stablecoins as digital assets tied to a fixed monetary value and used for transactions. The legislation establishes licensing procedures, reserve mandates, and oversight measures.
Firms holding over $10 billion in stablecoins would be federally regulated, with depository institutions overseen by the Federal Reserve and non-bank issuers by the Office of the Comptroller of the Currency (OCC).
Stablecoin issuers below the threshold would be regulated at the state level. However, larger firms could seek a waiver to continue operating under state supervision.
Senator Hagerty praised the bipartisan effort behind the bill, emphasizing its role in promoting market competition and stability. However, some critics argued that regulatory gaps remain a concern.
Senator Elizabeth Warren, a prominent critic of cryptocurrency, opposed the bill, warning of potential national security risks. In response, Senator Hagerty rejected her proposed amendments, asserting that the legislation already includes safeguards for consumer protection, anti-money laundering, and crime prevention. Furthermore, Senator Hagerty announced updates to the bill on March 10.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
