- The Senate Banking Committee approved the GENIUS Act moving it closer to a full Senate vote for stablecoin regulations.
- Lawmakers debated the bill with some Democrats pushing for stricter rules but the committee advanced it without major changes.
- Financial firms are preparing for stablecoin regulations while Binance adjusts its policies to meet new European crypto rules.
The U.S. Senate Banking Committee has approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), advancing the bill toward a full Senate vote. The legislation, introduced by Senator Bill Hagerty, seeks to establish a federal regulatory framework for stablecoins in the United States.
With an 18-6 vote, the committee cleared the bill with bipartisan support. A total of five Democrats supported the legislation which demonstrated both Republican and Democratic parties shared interest in stablecoin regulatory oversight.
The bill needs Senate and House of Representatives consent to reach President Donald Trump for enactment. The GENIUS Act has been designed by legislators to advance financial innovation through specialized regulations that protect consumer rights.
Committee Debate and Concerns
A few Democratic representatives from the committee voiced their reservations regarding the existing provisions in the bill during the hearing session. The bill gained support from both Democratic senators Kirsten Gillibrand and Angela Alsobrooks. The Republican majority denied most proposed Democratic amendments for additional regulatory controls during the House Committee hearing.
Senator Tim Scott underscored the necessity for stablecoin regulations to be transparent. Senator Elizabeth Warren, who serves as the Democrat ranking member of the committee, voiced strong opposition because the bill did not include sufficient protection measures. She warned about stablecoins serving in illegal financial operations.
Senator Catherine Cortez Masto also voiced objections, stating that the bill required further refinement before moving forward. Despite these concerns, the committee advanced the legislation without major changes.
Industry Response and Market Implications
As lawmakers debate stablecoin regulations, financial institutions and fintech companies are preparing for potential industry shifts. Several banks and payment platforms are developing their own stablecoins to enhance cross-border transactions. The growing recognition of stablecoins as legitimate financial tools has driven competition in the sector.
Binance announced updates to its stablecoin trading rules for users in the European Economic Area (EEA). Binance announced that it will remove trading pairs which fail to meet MiCA compliance from throughout the European Economic Area. The policy change from Binance coincides with European Union efforts to implement Markets in Crypto-Assets (MiCA) regulation which attempts to establish a uniform cryptocurrency policy throughout member nations.
Next Steps for the GENIUS Act
The bill waits for final Senate approval after receiving committee endorsement. The legislative discussion will progress as lawmaking officials work to obtain additional bipartisan endorsements. Lawmakers need to approve the bill and pass it through the House of Representatives before it can be finalized into law. After gaining approval, it will proceed to President Trump for his signature.
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