Nikolas Sargeant
In a notable bipartisan move, the Senate Banking Committee has advanced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in an 18-6 vote. The bill, which aims to regulate stablecoins with a set of clear guidelines, has received support from both Republican and Democrat lawmakers. While Senator Elizabeth Warren and some other Democrats voiced strong opposition to the bill, arguing it could exacerbate risks related to terrorism financing, the broader consensus within the committee marked a win for innovation. Warren’s proposed amendments, which would have restricted stablecoin issuance to banks, were not included in the final bill.
Recently the Senate and the House passed bipartisan bills to overturn the crypto tax rule. In the Senate, repealing the crypto tax rules passed 70-28. The bills contain slight differences which must be resolved in reconciliation before going to Trump’s desk for his signature.
Senator Tim Scott, the chairman of the Senate Banking Committee, praised the bill as a crucial step toward balancing financial innovation with consumer protection. “The GENIUS Act establishes common-sense rules,” said Scott, highlighting provisions that ensure stablecoin issuers maintain reserves backed one-to-one, comply with anti-money laundering laws, and promote the strength of the US dollar in the global economy. The bill’s passage through the committee represents a significant milestone in the crypto industry’s quest for clearer and more comprehensive regulations.
The bill, initially introduced by Senator Bill Hagerty in February 2025, has undergone revisions to include stricter reserve requirements, anti-money laundering provisions, and safeguards against terrorist financing. Hagerty defended the legislation against opposition from Warren, stressing that the bill already addresses key concerns and ensures protection for American consumers. Additionally, new provisions are expected to give US-based stablecoin issuers a competitive edge by making it more difficult for foreign issuers to comply with the regulations.
With the Senate Banking Committee’s approval, the GENIUS Act is now one step closer to becoming law. The bill must pass through both chambers of Congress before it is sent to President Trump for final approval. While the legislation remains a subject of debate, its advancement signals a shift toward integrating stablecoins into the traditional financial system. The upcoming vote will likely shape how stablecoins are regulated in the US and could set a precedent for future crypto legislation.
