The Senate Banking Committee of the United States has opted to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act through an 18-6 vote.
None of the amendments proposed by Senator Elizabeth Warren were included in the legislation, including her suggestion to restrict stablecoin issuance to banking entities.
“Unless changes are made, this bill will significantly enhance the financing of terrorism. It will facilitate sanctions evasion by nations such as Iran, North Korea, and Russia,” Warren contended.
Senator Tim Scott, chair of the Senate Banking Committee, hailed the bill as a breakthrough for innovation. He stated:
“The GENIUS Act introduces sensible regulations that require stablecoin issuers to hold reserves at a one-to-one ratio, adhere to anti-money laundering regulations, and ultimately safeguard American consumers while bolstering the US dollar’s position in the global market.”
Before it can be enacted into law, the bill must still receive approval from both chambers of Congress and then be presented to President Trump for his signature.
The advancement of the bill by the Senate Banking Committee marks the initial step toward clear, comprehensive legislation advocated by the cryptocurrency sector.
Senator Bill Hagerty, who introduced the bill in February 2025, defended it against Senator Warren’s proposed amendments, asserting that it already encompasses consumer protection, anti-money laundering measures, and crime prevention strategies.
On March 10, Hagerty revealed updates to the bill that would incorporate stricter reserve requirements for stablecoin issuers, enhanced AML provisions, measures against terrorist financing, transparent risk management protocols, and stipulations for compliance with sanctions.
According to Dom Kwok, the founder of the Web3 learning platform Easy A, the newly introduced provisions will pose challenges for foreign stablecoin issuers, thereby providing a competitive advantage to US-based companies.
Attorney Jeremy Hogan remarked that the GENIUS Act indicates a forthcoming integration of the conventional financial system with stablecoins.
“The legislation explicitly outlines mechanisms for stablecoins to interact with the traditional digital banking landscape. A ‘merge’ is in the works,” the attorney noted in a post on March 10.
During the White House Crypto Summit on March 7, US Treasury Secretary Scott Bessent clearly stated that the Trump administration intends to use stablecoins to safeguard the US dollar’s status as a global reserve currency.