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, moving it closer to a Senate vote. Senator Bill Hagerty introduced the bill to create a federal framework for stablecoin regulation.
The committee passed the bill with an 18-6 vote, including support from five Democrats. The GENIUS Act aims to set clear guidelines for stablecoin issuers, covering reserve requirements, audits, transparency, and licensing.
Senator Hagerty believes the bill will help the country lead in financial innovation while protecting consumers. He stated, “This legislation is a critical step in establishing a safe and pro-growth regulatory framework.”
During the hearing, some Democrats expressed concerns but acknowledged the need for regulatory clarity.Senators Kirsten Gillibrand and angela Alsobrooks co-sponsored it, showing bipartisan backing. Though,some Democrats proposed amendments for stricter controls,which were mostly voted down by the Republican majority.
- Establishes federal guidelines for stablecoin issuers.
- Addresses reserve requirements and transparency.
- Seeks to balance innovation with consumer protection.
Committee Chairman Senator Tim Scott described stablecoins as “travelers checks on the blockchain,” emphasizing the need for clear rules. Senator Elizabeth Warren opposed several provisions, calling it a “threat to national security.”
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 approval.The GENIUS Act is a meaningful step toward providing regulatory clarity for stablecoins in the U.S., balancing innovation with consumer protection.
