U.S. Senate Advances Stablecoin Bill in Key First Step
The U.S. Senate Banking Committee has approved a bill to regulate stablecoin issuers, marking a significant step toward federal oversight of the cryptocurrency industry. The bill, known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), passed with an 18-6 vote and now moves to the full Senate for consideration.
Key Developments:
The bill aims to establish federal regulations for stablecoin issuers.
It must still pass in the Senate and gain House approval before reaching President Donald Trump’s desk.
The measure has sparked debate, with Democrats pushing for stricter amendments that were ultimately rejected along partisan lines.
Legislative Battle:
During the 2.5-hour committee hearing, Senator Elizabeth Warren led Democratic opposition, arguing that the bill poses a “clear threat to national security.” She criticized the committee for advancing the legislation despite concerns over regulatory gaps and ongoing reports linking former President Trump to a potential stablecoin venture.
“It would be crazy to advance this bill with so many holes,” Warren said, referencing reports that Trump’s World Liberty Financial had engaged in discussions with Binance, a crypto exchange facing legal scrutiny.
Senator Catherine Cortez Masto of Nevada also voiced frustration, accusing Republicans of rushing the bill without proper debate. In response, Committee Chairman Tim Scott defended the process, stating, “Markups are messy. We’ve been working nights, days, weekends to get this accomplished.”
Bipartisan Support:
Despite partisan clashes, the bill has drawn backing from both sides. Lead sponsor Senator Bill Hagerty, a Tennessee Republican, emphasized its bipartisan nature, with support from Democratic Senators Kirsten Gillibrand (NY) and Angela Alsobrooks (MD).
“This bill establishes common-sense rules to protect consumers, promote competition, and foster innovation,” Hagerty said.
Next Steps:
With Republicans controlling both chambers following the 2024 elections, crypto industry advocates hope for swift legislative progress. The bill’s fate now depends on Senate approval and reconciliation with a House version before it can become law.
