Senate Banking Committee Clears Revised GENIUS Act

The Senate Banking Committee has passed a revised bill to clarify regulations on payment stablecoins, which aims to provide US-based issuers a competitive edge.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, approved in a bipartisan 18-6 vote, introduces a dual regulatory framework for stablecoins, balancing state and federal oversight while enforcing stricter standards on foreign issuers.

The bill aims to provide US-based stablecoin issuers with an edge over their offshore counterparts, as the US government views stablecoins as a way to uphold the dollar's dominance in global payments.

It also seeks to provide regulatory clarity for stablecoin issuers and investments by setting out clear procedures for institutions seeking licenses to issue stablecoins, along with establishing supervisory, examination, and enforcement frameworks with clear limitations.

The bill, initially introduced on February 4, has now been passed with revisions that include tougher requirements, such as anti-money laundering measures, reserve standards, liquidity provisions, and sanctions checks.

However, not all proposed restrictions were included. One key proposal, led by Senator Elizabeth Warren, aimed to limit stablecoin issuance to traditional banking institutions, but this measure was voted down.

Chairman Tim Scott, who helped introduce the act, said: “Stablecoins enable faster, cheaper, and competitive transactions in our digital world and facilitate seamless cross-border payments."

“This legislation will expand financial inclusion and provide much-needed clarity to ensure the industry can innovate and grow here in the United States while protecting consumers and promoting the U.S. dollar’s global position.”

Following the committee’s approval, the GENIUS Act now heads to both chambers of Congress before reaching President Donald Trump’s desk for final approval.