TL;DR
- The U.S. Senate approved a bill in its Banking Committee to regulate stablecoins.
- The GENIUS Act received majority support from the committee with an 18-6 vote, but it still needs approval from the House of Representatives.
- Although the bill is defended as a bipartisan initiative, several Democrats, led by Elizabeth Warren, have raised concerns about gaps in the proposal.
The U.S. Senate has taken a crucial step in regulating stablecoins with the approval of a bill in its Banking Committee.
This development brings the federal government closer to establishing clear regulations for stablecoin issuers. However, it still must go through several stages before becoming law. While the bill has moved forward in the Senate, it still requires approval from the House of Representatives, and both versions must be reconciled before being voted on in their respective chambers.
GENIUS Act
The bill, known as the GENIUS Act, aims to establish stricter and more stable regulations for stablecoins in the U.S. The text received majority backing in the committee with an 18-6 vote.
However, several committee members, particularly Democrats, voiced concerns about certain aspects of the bill. Senator Elizabeth Warren was one of the most vocal critics, arguing that the proposal contains loopholes that could pose a national security risk. Her frustration grew as her proposed amendments were rejected, calling for a more thorough review before further progress.
Bipartisan Effort to Advance Stablecoin Regulation
On the other hand, Republicans defended the bill as a bipartisan initiative addressing the need for clear rules that protect consumers and promote innovation in the crypto industry. Senator Bill Hagerty, the bill’s primary author, emphasized that the proposal is the result of collaboration between both parties, which he believes would ensure a more robust and balanced regulatory framework for stablecoins.
Although progress in the Senate is a positive sign for cryptocurrency advocates, the path to enacting the law remains challenging. Final approval will depend on how differences between the Senate and House versions of the bill are resolved. Cryptocurrencies continue to await a more stable regulatory framework that provides greater clarity and legal security for stablecoin issuers in the U.S.
