- The stablecoin-focused GENIUS Act passed the Senate Banking Committee with an 18-6 bipartisan vote, advancing to a full Senate vote.
- Five Democratic senators joined Republicans to support the bill, while Senator Elizabeth Warren’s proposed amendments were rejected.
- Bill sponsor Senator Hagerty intends for the legislation to receive a full Senate floor vote by the end of April.
The U.S. Senate Banking Committee has passed the stablecoin regulatory framework known as the GENIUS Act with strong bipartisan support in an 18-6 vote on Thursday. The legislation, which creates a legal pathway for nonbank stablecoin issuers to operate in the American economy, will now advance to the full Senate for consideration.
The bill secured notable bipartisan backing, with five Democratic senators crossing party lines to join Republicans in supporting the measure. Democratic supporters included bill cosponsor Senator Angela Alsobrooks (D-MD) and committee members Mark Warner (D-VA), Andy Kim (D-NJ), Lisa Blunt Rochester (D-DE), and Ruben Gallego (D-AZ).
Senator Bill Hagerty (R-TN), the bill’s primary sponsor, announced plans to bring the legislation to the Senate floor for a full vote before the end of April.
Industry leaders celebrated the committee’s decision, with Circle CEO Jeremy Allaire calling it a “massive move” on Twitter: “A huge step towards providing regulatory clarity for stablecoins, and a huge step towards upgrading and making the dollar more competitive.”
Senator Cynthia Lummis (R-WY), a cosponsor of the legislation, emphasized the competitive implications in a statement to Decrypt: “The Banking Committee’s strong bipartisan passage of the GENIUS Act out of committee brings us one step closer to providing stablecoin issuers with the choice between state and national charters and will secure our nation’s competitive edge in the rapidly evolving digital asset space.”
During Thursday’s meeting, cryptocurrency critic Senator Elizabeth Warren (D-MA) attempted to add several amendments to the bill. Her proposals would have blacklisted stablecoin issuers whose tokens were used in connection with illegal activities or by state enemies, and expanded the Act’s provisions to include crypto exchanges and third parties interacting with stablecoins.
All of Warren’s amendments were rejected, primarily along party lines. Visibly frustrated after her third amendment failed, Warren remarked: “Who are we trying to protect, the child pornographers and Iran and North Korea?” She later added, “Nobody’s looking to shut this down, no one’s looking to stop innovation. But we do want to try to make this a little cleaner than it is right now.”
An updated version of the GENIUS Act was released earlier this week in preparation for the markup session. While industry leaders have generally supported the legislation, some cryptocurrency users have pushed back against a provision requiring stablecoin issuers to maintain capabilities to “seize, freeze, burn, or prevent the transfer” of tokens when legally obligated to do so.
The bill’s advancement represents a significant development in cryptocurrency regulation, potentially creating a clearer legal framework for stablecoin issuers operating in the United States.
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