Senate Banking Committee Advances GENIUS Act for Stablecoin Regulation

Lawmakers are taking decisive steps toward regulating stablecoins at the federal level. The Senate Banking Committee has approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in an 18-6 vote, setting the stage for clearer oversight of digital assets.

Senator Bill Hagerty, who introduced the legislation, expressed optimism about its impact on the financial sector. “I’m pleased to see my GENIUS Act successfully pass out of the Senate Banking Committee with bipartisan support. This legislation is a critical first step in establishing a safe and pro-growth regulatory framework,” he stated.

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Bipartisan Support with Policy Debates

The GENIUS Act finds support from Republican and Democratic members of Congress. The senators Kirsten Gillibrand and Cynthia Lummis jointly sponsored the bill which demonstrated broad support from both political parties.

Congressional Democrats expressed mixed reactions toward the bill by advocating both for more stringent regulations and supporting its current provisions. A motion was submitted by Democrats to amend the bill but this motion did not pass the committee review. During the legislative process Senator Elizabeth Warren expressed her opposition to some sections of the bill because she believed cryptocurrency posed national security threats. The legislative committee accepted the bill and continued through its stages despite concerns because they saw financial stability alongside innovation as essential elements.

The senator emphasized that establishing clear regulations would boost economy efficiency through improved transactions along with freeing capital assets and strengthening U.S. treasury appeals.

Tether CEO Supports the Stablecoin Bill

Tether CEO Paolo Ardoino welcomed the bill’s approval, calling it a major step forward. Speaking to Bloomberg, he stated that the bill would “unlock” much-needed regulatory clarity for stablecoins.

“We are very excited because, as you know, Tether created the stablecoin industry in 2014. We issued the first stablecoin, and we have the biggest userbase when it comes to stablecoins,” Ardoino said.

Nebraska’s Push for State-Level Control

Nebraska has emphasized the importance of state-level oversight while federal lawmakers push for stablecoin regulation. Representative Mike Flood has advocated for maintaining a state pathway for regulation.

“Nebraska has been a leader in digital assets,” Rep. Flood said. “At Tuesday’s hearing, I talked about ensuring that we maintain a state pathway for stablecoin regulation.” Nebraska’s Financial Innovation Act already provides clarity for digital asset custody institutions.

Flood stressed that any federal legislation should align with Nebraska’s framework to preserve state regulatory authority while complying with federal standards.

The GENIUS Act’s approval in the Senate Banking Committee marks a crucial step toward comprehensive stablecoin regulation. However, the bill must still pass the full Senate and the House before reaching President Donald Trump for final approval.

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