Senate Banking Committee passes GENIUS Act with bipartisan support, advancing stablecoin regulation

The Senate Banking Committee passed the GENIUS Act with bipartisan enactment connected an 18-6 vote, clearing the measure for the afloat Senate to consider.

Senator Bill Hagerty authored the bill, which received the backing of each Republican members of the Committee and Democratic Senators Mark Warner, Andy Kim, Lisa Blunt Rochester, Ruben Gallego, and Angela Alsobrooks.

Hagerty expressed his restitution with the bill’s bipartisan support, emphasizing its value successful fostering fiscal innovation and maintaining the US’s enactment successful integer assets.

He added: 

“This authorities is simply a captious archetypal measurement successful establishing a harmless and pro-growth regulatory model that volition unleash innovation and beforehand the President’s ngo to marque America the satellite superior of crypto. I look guardant to seeing this measure walk the Senate successful the adjacent aboriginal and yet signed into instrumentality by President Trump.”

The GENIUS Act seeks to found a broad regulatory model for stablecoin issuance and oversight successful the United States. Under the projected law, stablecoin issuers indispensable support 1:1 reserves, ensuring that US dollars, insured slope deposits, oregon short-term Treasury bills backmost each issued token. 

The measure besides creates a dual regulatory pathway, allowing issuers to take betwixt national oversight nether the Office of the Comptroller of the Currency (OCC) oregon state-level supervision, provided that authorities regulations conscionable national standards. 

Committee Chairman Senator Tim Scott besides highlighted the value of regulatory clarity, stating that definite industries and American consumers person been successful the acheronian for acold excessively long. 

Scott added:

“This uncertainty besides stifled innovation present astatine home, successful America. That changes contiguous with the GENIUS Act, which is simply a bipartisan measurement guardant successful ensuring that stablecoins are harmless and reliable tools successful the fiscal system.”

The Committee Chairman besides said the measure takes enactment to “end the weaponization of fiscal regulators.” 

This connection could subordinate to the bill’s content, which explicitly classifies stablecoins arsenic non-securities. This places them extracurricular the jurisdiction of the Securities and Exchange Commission (SEC), which is known for its erstwhile “regulation by enforcement” approach.

Positive reactions

Senator Cynthia Lummis, a vocal advocator for crypto regularisation and subordinate of the Committee, noted that the bill’s transition retired of the Committee strengthens the regulatory model for stablecoin issuers. 

She added that the measure gives the US a “competitive borderline successful the rapidly evolving integer plus space.”

Circle CEO Jeremy Allaire called the Committee ballot a “massive determination successful Washington today,” highlighting the decision’s bipartisan nature. He besides noted that it is simply a “huge measurement towards upgrading and making the dollar much competitive.”

Coinbase main argumentation serviceman Faryar Shirzad praised the bill’s advancement and thanked the senators who supported it.

Blockchain Association CEO Kristin Smith welcomed the decision, stating that the transition of the GENIUS Act is simply a astute measurement successful the close absorption for American innovation and economical leadership.

The measure is present moving to the afloat Senate for a vote. If enacted, the authorities would supply long-awaited clarity for stablecoin issuers and users, reinforcing the US’ relation arsenic a person successful integer currency regulation.

The station Senate Banking Committee passes GENIUS Act with bipartisan support, advancing stablecoin regulation appeared archetypal connected CryptoSlate.