Senate Banking Committee advances GENIUS stablecoin bill

The United States Senate Banking Committee elected to beforehand the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act successful an 18-6 vote.

None of the amendments projected by Senator Elizabeth Warren made it into the bill, including her connection to limit stablecoin issuance to banking institutions.

“Without changes, this measure volition supercharge the financing of terrorism. It volition marque sanctions evasion by Iran, North Korea, and Russia easier,” Warren argued.

Senator Warren argues for amendments to beryllium included successful the bill. Source: US Senate Banking Committee GOP

Senator Tim Scott, president of the Senate Banking Committee, characterized the measure arsenic a triumph for innovation. The Senator said:

"The GENIUS Act establishes Common Sense rules that necessitate stablecoin issuers to support reserves backed one-to-one, comply with anti-money laundering laws, and yet support American consumers portion promoting the US dollar's spot successful the planetary economy."

The measure indispensable inactive walk a ballot successful some chambers of Congress earlier it is turned implicit to President Trump and yet signed into law.

However, the Senate Banking Committee advancing the measure represents the archetypal measurement successful clear, broad authorities requested by the crypto industry.

Senator Tim Scott, president of the Senate Banking Committee, leads the hearing. Source: US Senate Banking Committee GOP

Related: The GENIUS stablecoin measure is simply a CBDC trojan equine — DeFi exec

GENIUS Act gets overhaul to diagnostic stricter provisions

Senator Bill Hagerty, who introduced the bill successful February 2025, defended the authorities against the projected amendments from Senator Warren, arguing that the measure already includes provisions for user protection, Anti-Money Laundering, and transgression prevention.

On March 10, Hagerty announced that the measure was updated to see stricter reserve requirements for stablecoin issuers, AML provisions, safeguards against violent financing, transparent hazard absorption procedures, and stipulations for sanctions compliance.

According to Dom Kwok, laminitis of the Web3 learning level Easy A, the recently added provisions volition marque it harder for overseas stablecoin issuers to comply, giving US-based firms a competitory edge.

Senator Bill Hagerty defends his measure from projected amendments. Source: Senate Banking Committee GOP

Attorney Jeremy Hogan said the GENIUS Act signals an impending merger of the accepted fiscal strategy with stablecoins.

“The authorities is explicitly making plans for stablecoins to interact with the accepted integer banking system. The ‘merge’ is being planned,” the lawyer wrote successful a March 10 X post.

During the March 7 White House Crypto Summit, US Treasury Secretary Scott Bessent explicitly said that the Trump medication would leverage stablecoins to protect the US dollar's planetary reserve status.

Magazine: Bitcoin payments are being undermined by centralized stablecoins