The Senate Banking Committee Passes the GENIUS Act
The Senate Banking Committee recently passed the GENIUS Act with bipartisan support on an 18-6 vote, paving the way for the full Senate to consider the bill.
Authorship and Support
- Senator Bill Hagerty authored the bill.
- The bill received support from all Republican members of the Committee and Democratic Senators Mark Warner, Andy Kim, Lisa Blunt Rochester, Ruben Gallego, and Angela Alsobrooks.
Senator Hagerty expressed his satisfaction with the bipartisan support for the bill, emphasizing its significance in fostering financial innovation and maintaining the US’s leadership in digital assets.
“This legislation is a critical first step in establishing a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto. I look forward to seeing this bill pass the Senate in the near future and ultimately signed into law by President Trump.”
Key Provisions of the GENIUS Act
- The bill seeks to establish a comprehensive regulatory framework for stablecoin issuance and oversight in the United States.
- Stablecoin issuers must maintain 1:1 reserves, ensuring that US dollars, insured bank deposits, or short-term Treasury bills back each issued token.
- The bill creates a dual regulatory pathway, allowing issuers to choose between federal oversight under the Office of the Comptroller of the Currency (OCC) or state-level supervision.
Importance of Regulatory Clarity
Committee Chairman Senator Tim Scott emphasized the importance of regulatory clarity in the financial industry, stating that certain industries and American consumers have been in the dark for too long.
“This uncertainty also stifled innovation here at home, in America. That changes today with the GENIUS Act, which is a bipartisan step forward in ensuring that stablecoins are safe and reliable tools in the financial system.”
The bill also takes action to “end the weaponization of financial regulators” by classifying stablecoins as non-securities, placing them outside the jurisdiction of the Securities and Exchange Commission (SEC).
Positive Reactions to the GENIUS Act
- Senator Cynthia Lummis noted that the bill’s passage strengthens the regulatory framework for stablecoin issuers.
- Circle CEO Jeremy Allaire called the Committee vote a “massive move in Washington today,” highlighting the decision’s bipartisan nature.
- Coinbase chief policy officer Faryar Shirzad praised the bill’s progress and thanked the senators who supported it.
- Blockchain Association CEO Kristin Smith welcomed the decision, stating that the passage of the GENIUS Act is a smart step in the right direction for American innovation and economic leadership.
The bill is now set to move to the full Senate for a vote, providing much-needed clarity for stablecoin issuers and users and reinforcing the US’ role as a leader in digital currency regulation.
