Senate committee advances GENIUS Act in bipartisan vote
The U.S. Senate Banking Committee has approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act, moving it toward a Senate vote.
Introduced by Senator Bill Hagerty, the bill seeks to establish a federal framework for stablecoin regulation.
The committee passed the bill with an 18-6 vote, including support from five Democrats. The GENIUS Act proposes clear guidelines for stablecoin issuers, addressing reserve requirements, audits, transparency, and licensing.
Senator Hagerty stated that the bill would help the country “lead in financial innovation” while protecting consumers.
During the committee hearing, several Democrats reportedly expressed concerns about the bill’s current form but acknowledged the need for regulatory clarity. Senators Kirsten Gillibrand and Angela Alsobrooks co-sponsored the bill, showing bipartisan backing.
However, some Democratic members proposed amendments to add stricter regulatory controls, most of which were voted down by the Republican majority.
Stablecoin clarity
Committee Chairman Senator Tim Scott described stablecoins as “just travelers checks on the blockchain,” emphasizing the need for clear regulations. The committee’s ranking Democrat, Senator Elizabeth Warren, opposed several provisions of the bill, calling it a “threat to national security.”
The bill now awaits a vote in the full Senate. If passed, it will proceed to the House of Representatives before reaching President Donald Trump’s desk for final approval.
The GENIUS Act represents a significant step toward providing regulatory clarity for stablecoins in the United States. Its progress reflects ongoing efforts to balance innovation with consumer protection in the rapidly evolving digital asset landscape.
