Senate Advances Bill for Stablecoin Regulation
The U.S. Senate Banking Committee has approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act. This move brings the bill closer to a full senate vote.
Senator Bill Hagerty introduced the GENIUS Act to create a federal framework for stablecoin regulation. The committee passed it with an 18-6 vote, including support from five democrats. The bill aims to set clear rules for stablecoin issuers, covering reserve requirements, audits, clarity, and licensing.
Hagerty believes the bill will help the U.S. lead in financial innovation while safeguarding consumers. He expressed satisfaction with the bipartisan support, calling it a crucial step toward a safe and growth-oriented regulatory framework.
During the hearing, some Democrats had concerns about the bill’s current form but agreed on the need for regulatory clarity. Senators Kirsten Gillibrand and Angela Alsobrooks co-sponsored the bill, showing bipartisan backing. however, proposed amendments for stricter controls were mostly rejected by the republican majority.
Committee Chairman Senator Tim Scott likened stablecoins to “travelers checks on the blockchain,” stressing the need for clear regulations.Senator Elizabeth Warren, the committee’s ranking Democrat, opposed several provisions, citing national security risks.
The bill now awaits a full Senate vote. If passed, it will move to the House of Representatives and then to President Donald Trump for final approval. The GENIUS Act is a significant step toward providing regulatory clarity for stablecoins in the U.S., balancing innovation with consumer protection.
