The Senate Banking Committee has advanced the GENIUS Act with bipartisan support, passing it with an 18-6 vote, thereby sending it on to the full Senate for consideration.
Crafted by Senator Bill Hagerty, the bill garnered support from all Republican members of the Committee, along with Democratic Senators Mark Warner, Andy Kim, Lisa Blunt Rochester, Ruben Gallego, and Angela Alsobrooks.
Hagerty shared his approval of the bipartisan backing, stressing its significance in promoting financial innovation and sustaining the US’s leadership in the realm of digital assets.
He further mentioned:
“This legislation represents a crucial first step towards creating a secure and growth-oriented regulatory framework that will drive innovation and support the President’s goal of positioning America as the global capital of crypto. I eagerly anticipate the bill’s passage through the Senate in the near future, followed by its signing into law by President Trump.”
The GENIUS Act aims to establish an extensive regulatory structure for stablecoin issuance and oversight in the US. Under this proposed legislation, stablecoin issuers will be required to maintain reserves on a 1:1 basis, ensuring that each token issued is backed by US dollars, insured bank deposits, or short-term Treasury bills.
Additionally, the bill introduces a dual regulatory pathway, permitting issuers to opt for oversight from the Office of the Comptroller of the Currency (OCC) at the federal level, or to pursue state-level oversight, so long as state regulations align with federal standards.
Committee Chairman Senator Tim Scott emphasized the necessity of regulatory clarity, remarking that various industries and American consumers have faced prolonged uncertainties.
Scott further stated:
“This uncertainty has also impeded innovation in America. With the GENIUS Act, we take a bipartisan step forward, ensuring that stablecoins are secure and dependable elements within the financial system.”
The Chairman also indicated that this bill aims to “end the misuse of financial regulators.”
This could refer to the bill’s provisions that specifically categorize stablecoins as non-securities, thereby excluding them from the oversight of the Securities and Exchange Commission (SEC), known for its past approach of “regulation by enforcement.”
Positive reactions
Senator Cynthia Lummis, a staunch proponent of cryptocurrency regulation and a Committee member, pointed out that the bill’s advancement strengthens the regulatory landscape for stablecoin issuers.
She remarked that the legislation provides the US with a “competitive advantage in the swiftly changing digital asset environment.”
Circle CEO Jeremy Allaire described the Committee’s decision as a “significant development in Washington today,” underscoring its bipartisan support. He added that it represents a “major step towards enhancing and strengthening the dollar’s competitiveness.”
Coinbase’s chief policy officer Faryar Shirzad commended the bill’s progression and expressed gratitude to the senators who endorsed it.
Blockchain Association CEO Kristin Smith celebrated the development, asserting that the passage of the GENIUS Act is a prudent step forward for American innovation and economic leadership.
The legislation is now headed to the full Senate for a vote. If enacted, it would deliver much-needed clarity for stablecoin issuers and users, solidifying the US’s position as a frontrunner in digital currency regulation.
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