The U.S. Senate Banking Committee has passed the GENIUS Act stablecoin bill. They voted 18-6, moving it closer to a full Senate vote by late July. This is a big step in the U.S.’s digital asset rules, following a 2025 Executive Order.
The bill aims to make stablecoin rules clear. It balances new ideas with keeping customers safe. This is key as digital assets grow.
The SEC has changed how it handles cases, showing a new approach. Acting SEC Chair Mark Uyeda is now more focused on fraud than technical issues. With over 19.8 million bitcoin in use, clear rules are more important than ever.
Key Takeaways
- U.S. Senate Banking Committee approves genius act stablecoin bill with 18-6 bipartisan vote.
- Bill aims to meet the July 22, 2025, deadline set by the President’s Executive Order on digital assets.
- SEC’s dismissal of lawsuits against exchanges signals a shift toward focusing on fraud rather than technical violations.
- GENIUS Act updates prioritize stablecoin transparency and align with Treasury’s Strategic Bitcoin Reserve plans.
- U.S. Senate financial news highlights bipartisan support for balancing innovation and market stability.
U.S. Senate Banking Committee Approves GENIUS Act Stablecoin Bill
The Senate Banking Committee voted 18-6 to move forward with the GENIUS Act stablecoin bill. This shows a growing push for cryptocurrency regulation at the federal level. The vote highlights a growing agreement on how to handle risks in digital asset markets.
Key Players Behind the Committee’s Decision
Senator Bill Hagerty pushed hard for the bill. He said it would help create a safe and growing environment. Republican Cynthia Lummis and Democrat Kirsten Gillibrand worked together on it. But, Senator Elizabeth Warren expressed worries about national security in the stablecoin legislation.
Voting Results and Party Positions
| Vote Outcome | 18-6 |
|---|---|
| Majority Party | Republicans: 14 for, 2 against |
| Minority Party | Democrats: 4 for, 4 against |
| Notable Cross-Party Support | Democratic Senators Mark Warner and Sheldon Whitehouse backed the bill |
Timeline of the Approval Process
- Jan 2025: Executive Order mandates crypto regulatory framework by July 22
- Mar 2025: Committee hearings on stablecoin risks and consumer protections
- Apr 2025: Amendments rejected to expand cryptocurrency news transparency rules
- May 2025: Final markup session before full Senate vote expected by summer
“The bill’s reserve requirements will stabilize markets while fostering innovation,” stated Hagerty during markup proceedings.
Now, the bill will go to the full Senate for a vote. Then, it will go to the House for more discussion. The Treasury’s Strategic Bitcoin Reserve plans will also move forward with these steps.
Understanding Stablecoins and Their Role in the Digital Economy
Stablecoins are digital assets linked to traditional currencies like the US dollar. They connect crypto and traditional finance, making transactions smoother. Tether’s USDT, the biggest stablecoin, has over 143 billion USD in reserves. Most of this, 80%, is in US government bonds as of late 2024. Only a tiny 0.09% is in cash or bank deposits, showing their unique reserve structure.
These digital assets help reduce volatility in crypto trading. Unlike Bitcoin or Ethereum, stablecoins keep their price stable. This makes them key for everyday crypto transactions. Senator Tim Scott called them like “traveler’s checks on the blockchain technology,” showing their practical use in digital finance.
“Stablecoins are the backbone of crypto liquidity—without them, decentralized finance would lack a stable foundation.”
| Type | Backing | Issuer | Primary Use |
|---|---|---|---|
| Stablecoins | Fiat currency reserves | Private companies | Trading, payments, DeFi |
| Central Bank Digital Currencies (CBDCs) | National currency reserves | Central banks | Retail/wholesale transactions |
| Bitcoin | Algorithmic | Decentralized network | Store of value, speculation |
As digital currency regulation evolves, stablecoins are changing global finance. They are making cross-border payments easier. Their growth has led to bipartisan support for laws like the GENIUS Act. This aims to clarify their role while balancing innovation and risk. With over 19.8 million bitcoins in circulation, the debate on their value remains key.
Breaking Down the GENIUS Act: Purpose and Framework
The GENIUS Act aims to clear up digital currency approval rules. It sets up a tiered system for stablecoin issuers. This balance helps financial innovation grow while keeping risks low. It also fills gaps in fintech developments oversight.
Core Objectives of the Legislation
Its main goals are:
- Legal certainty for stablecoin issuance
- Stopping financial instability
- Encouraging clear market practices
Regulatory Boundaries Established
Issuers are sorted by asset size:
| Threshold | Regulatory Authority |
|---|---|
| Over $10B | Federal oversight (FRB/OCC) |
| Under $10B | State-level regulation |
Big issuers must do monthly reserve audits. They also have to follow strict liquidity rules.
Consumer Protection Measures
There are key safeguards:
- No interest-bearing stablecoins allowed
- Must clearly show reserve details
- Stablecoins can’t be insured by FDIC
Breaking reserve reporting rules can lead to fines up to 15% of yearly income.
Industry Reactions to the Senate Banking Committee’s Decision
Cryptocurrency news and industry players are watching the Senate Banking Committee’s move on the GENIUS Act. Circle’s CEO, Jeremy Allaire, sees the stablecoin legislation as a big step forward. He believes it could make the dollar more competitive worldwide.
“This bill creates a framework for responsible financial innovation,” said Allaire, whose firm’s USDC is one of the largest stablecoins. “Clear rules will foster trust in digital assets.”
But opinions are split. Traditional banks worry about losing deposits to stablecoins. Fintech firms, on the other hand, want modern payment systems. Senator Elizabeth Warren thinks the bill is a “national security threat” because it doesn’t address risks.
Banks and crypto firms are adjusting. Key responses include:
- Binance delisted non-MiCA compliant stablecoins in the EEA.
- Major crypto assets like XRP and Solana rose sharply after the announcement.
- Republicans blocked stricter Democratic amendments during committee votes.
A stablecoin legislation tracker by S&P Global shows market uncertainty. “Without clear rules, institutional adoption will lag,” analysts say. Meanwhile, issuers above $10B in reserves will face federal oversight.
| Coin | Price Change |
|---|---|
| XRP | +21% |
| Solana | +12.5% |
| Cardano | +37% |
While crypto supporters see progress, the bill’s future is still up in the air. Critics say the GOP plan doesn’t protect retail investors enough. Now, the bill goes to the full Senate, where bipartisan support will decide its fate.
Potential Impact on Cryptocurrency Markets and Blockchain Technology
Regulatory changes under the GENIUS Act could change how blockchain and cryptocurrency interact. Markets might see short-term ups and downs as they adjust to new rules. But, long-term plans aim to keep innovation and stability in balance.
“Stablecoins, though labeled as ‘payment-purpose,’ are essentially also used as savings vehicles,” warns the American Banking Association. This shows the risk of destabilizing traditional finance if oversight fails. It highlights the need for quick action in digital currency regulation to avoid big problems.
Rapid changes are already happening. The LUNC token lost 7.13% in 24 hours, now at $0.00005957. This shows investors are being careful. USTC dropped 3.84% to $0.01188 as companies look at the cost of following rules. Clear rules could help calm these swings by making things clearer for traders and issuers.
Institutional money might go into regulated stablecoins like USD Coin. But, unsecured tokens will face tougher checks. The Treasury’s Strategic Bitcoin Reserve, started by President Trump, could change how demand works. Yet, the SEC’s 60% XRP ETF approval odds are mixed for altcoins waiting for legal clarity.
Stablecoin platforms need to update to meet new rules. This includes tracking transactions in real-time and following anti-money laundering rules. Blockchain developers might focus on making systems work together better. This is to meet OCC Interpretive Letter 1183, which lets banks offer crypto custody without needing approval first. Ripple’s pending deal with the SEC could also change how smart contracts work to avoid being seen as securities.
The Path Forward: Implementation Timeline and Next Legislative Steps
As genius act updates shape u.s. senate financial news, everyone waits for the next steps. The bill will now go to the House of Representatives. There, support is not sure, even with finance industry developments pushing for crypto rules.
“This legislation is a critical step toward ensuring stablecoins serve the public interest,” stated Senator Bill Hagerty, emphasizing urgency ahead of the August 2025 congressional recess.
- House Consideration: The bill faces hurdles in the House, needing support from both parties. Representatives like French Hill and Bryan Steil might push for the STABLE Act to help pass it.
- Presidential Approval: President Trump wants a stablecoin bill by August 2025. But, the Senate must agree first.
- Regulatory Readiness: Agencies like the OCC and Fed must have plans ready by July 22, 2025, as ordered by the January 23 EO.
House of Representatives Considerations
Democrats like Senator Elizabeth Warren oppose the bill, showing a big divide. The House might use the OCC’s new rules on crypto custody as a middle ground. But, the FDIC and Federal Reserve’s rules don’t match the OCC’s, causing confusion.
Presidential Signing Prospects
President Trump supports the bill, but there are debates inside the White House. A report on Bitcoin and digital assets from May 5 could influence the talks before the EO’s deadline.
Regulatory Agency Preparations
Agency actions are already underway:
| Agency | Action |
|---|---|
| Federal Reserve | Developing stablecoin reserve requirements |
| OCC | Finalizing crypto custody guidelines by June 2025 |
| FDIC | Reviewing pre-approval processes for crypto banks |
Crypto markets are optimistic, with XRP up 21% after the news. This shows investors are hopeful about the bill’s progress.
How the GENIUS Act Fits into Global Digital Currency Regulation
The GENIUS Act makes the U.S. a major player in digital currency regulation. It comes as countries worldwide try to control blockchain technology. The European Union and Singapore have strict rules, but the U.S. aims to keep stablecoins stable. This helps the dollar stay strong globally.
Recently, the White House said stablecoins could help the dollar’s global standing. This shows the U.S. is serious about keeping the dollar’s top spot.
“The U.S. Treasury’s stance aligns with the January 2025 Executive Order mandating a federal digital asset framework by July 2025,” said analysts tracking cross-border regulatory shifts. Meanwhile, Federal Reserve Governor Christopher Waller emphasized allowing non-banks to issue stablecoins, signaling flexibility compared to stricter EU guidelines.
Across the globe, countries have different focuses. The EU cares most about protecting consumers. Japan and Switzerland want to encourage innovation. The U.S. GENIUS Act tries to find a middle ground. It wants to keep innovation alive while also fighting against risks like money laundering.
Its success will depend on how well it fits with new rules in places like the UK and Canada.
- EU MiCA: Requires strict asset disclosures and anti-money laundering checks
- Singapore: Licensing for crypto firms under its Payment Services Act
- Switzerland: “Three-pillar” model balancing innovation and oversight
The $228 billion stablecoin market is watching the U.S. closely. If rules are the same everywhere, it could help. But, if they’re different, it might create chances for making money by taking advantage of these differences.
The Treasury’s report on May 5, 2025, will show how U.S. rules fit with global ones. This balance between national rules and working together internationally will shape the future of cryptocurrency regulation.
Conclusion: What the GENIUS Act Means for the Future of Financial Innovation
The GENIUS Act’s approval by the Senate Banking Committee is a big deal. It shows the U.S. is taking fintech seriously. The bill has support from 18 senators, including five Democrats.
It aims to balance new ideas with rules. Stablecoins must keep 1:1 reserves and face dual regulation. This makes stablecoins key to financial growth while keeping risks in check.
The bill changes how stablecoins are seen by the SEC. It gives issuers clear rules, either from the federal or state level. But, Senator Elizabeth Warren says it might not protect consumers enough.
There’s a debate between old finance and new tech. The bill’s success depends on finding common ground. This will help it pass the full Senate and House.
If passed, the bill could make the U.S. dollar even more important in digital deals. It might also bring more money into blockchain and crypto. But, it’s a tough road ahead. The bill must overcome party differences and keep up with financial changes.
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Source Links
- Agencies Ease Crypto Scrutiny as White House Advances its Digital Assets Policy | JD Supra
- US Court Approves 3AC’s Bid to Expand $1.5B Claim Against FTX – Decrypt
- Vermont Drops Crypto Staking Case Against Coinbase – Decrypt
- BREAKING: US Senate Advances Controversial Stablecoin Bill Despite Democratic Resistance
- Just In: US Senate Committee Approves Senator Hagerty’s Stablecoin Bill, Genius Act
- U.S. Senate Banking Committee Advances Stablecoin Bill with Bipartisan Support; Full Senate Vote Next
- U.S. Senate Banking Committee Approves GENIUS Act Stablecoin Bill | Blockchain crypto bill | CryptoRank.io
- Industry News | Cryptocurrency Indusrty » TronWeekly
- XRP and Ethereum Status In View as Ripple SEC Lawsuit Settlement Progresses
- Terra Luna Classic: Community Demand Changes to LUNC Staking Model
- Decrypt: AI, Bitcoin, Culture, Gaming, and Crypto News – Decrypt
- Watchdog group says stablecoin bill may facilitate ‘crypto abuse’
- Trump 2.0: What new changes are coming to cryptocurrency regulation? A review of key policy adjustments in the eight weeks since he took office
- Senate Banking Committee passes GENIUS Act with bipartisan support, advancing stablecoin regulation
