U.S. Senate Banking, Housing, and Urban Affairs Committee Passes Stablecoin Regulation Bill
The U.S. Senate Banking, Housing, and Urban Affairs Committee (referred to as the Banking Committee) has passed the stablecoin regulation bill titled the “U.S. Stablecoin National Innovation and Establishment Act” (GENIUS Act), marking a crucial first step before the bill is sent to President Donald Trump for signing into law.
The Banking Committee advanced this bill aimed at regulating U.S. stablecoin issuers at the federal level with a vote of 18 to 6. It still requires approval from the full Senate, and a similar bill is awaiting approval in the House of Representatives. Despite numerous hurdles ahead, including the need to reconcile different versions passed by both chambers in the future.
Republican Banking Committee member Tim Scott stated in the announcement:
Additionally, the “Financial Integrity and Regulatory Management Act” (FIRM Act) proposed by Scott was also passed by the committee. He remarked, “Today, we also took action to terminate the weaponization of financial regulatory agencies. The FIRM Act will prevent regulators from denying banking services to legitimate businesses and individuals under the pretext of reputational risk.”
Many Democratic lawmakers on the committee acknowledged the necessity of the GENIUS Act while seeking to add multiple amendments to increase additional regulatory measures and restrictions. However, each amendment was defeated in party-line votes.
Democratic committee chair Elizabeth Warren led her colleagues in opposing certain provisions of the bill, asserting that the current content of the legislation represents “a clear threat to our national security.” She also referenced a report concerning the Trump family’s supported cryptocurrency project World Liberty Financial allegedly discussing business with Binance, stating that this stablecoin legislation should be improved “to prevent such blatant corruption.”
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