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U.S. Senate Committee Approves Stablecoin Bill

U.S. Senate Committee Approves Stablecoin Bill

TimestabloidTimestabloid2023/07/14 16:00
By:By Zaccheaus Ogunjobi

The United States is making significant strides toward establishing a regulatory framework for stablecoins , as the Senate Banking Committee has given the green light to the GENIUS Act. This milestone comes after an 18-6 vote in favor of the legislation, moving the country one step closer to comprehensive oversight of digital assets. If the bill progresses successfully, it could soon reach President Donald Trump’s desk for final approval.

For clarity, the GENIUS Act—formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act—seeks to implement federal guidelines for stablecoin issuers, ensuring compliance and safeguarding financial stability.

Next Steps for the Stablecoin Bill

With the Senate Banking Committee’s approval secured, the legislation now moves to the full Senate for further deliberation and potential passage. However, a similar version of the bill is also under review in the House of Representatives. Before becoming law, both chambers must reconcile any differences between their respective versions.

Once a unified bill is finalized, it will be presented to President Trump for his signature, bringing federal-level regulation to stablecoin issuers and establishing clear rules for their operations.

Controversy Surrounding the Bill’s Approval

The bill’s advancement follows an extensive committee debate that lasted over two hours. While the GENIUS Act received bipartisan backing, some Democratic lawmakers raised concerns, advocating for additional safeguards and restrictions.

Among the most vocal critics was Senator Elizabeth Warren (D-MA), a well-known opponent of cryptocurrencies. She warned that the legislation could pose risks to national security and expressed reservations about its timing.

Senator Warren specifically pointed to reports suggesting that President Trump may be exploring the creation of a government-backed stablecoin in partnership with a controversial firm. She cited allegations from a Wall Street Journal report claiming that Trump’s family initiative, World Liberty Financial, had engaged in discussions with Binance. The report further suggested that Binance had sought a presidential pardon for its founder, Changpeng Zhao (CZ), in exchange for a business arrangement. CZ has strongly denied these claims, calling the report misleading.

Despite these denials, Warren remained skeptical, arguing that moving forward with the GENIUS Act under such circumstances could have unintended consequences. “We’ll regret this!” she cautioned.

Meanwhile, Republican members of the committee, including Senator Tim Scott, defended the bill’s progress. Scott emphasized that the legislation aligns with efforts to provide clear regulatory guidance for U.S. investors and prevent innovation from being driven overseas.

Key Amendments Introduced

Before securing committee approval, lawmakers made several bipartisan adjustments to the GENIUS Act. Eleanor Terrett, a renowned journalist known for her coverage of digital assets, highlighted some of these modifications.

Among the notable changes are clarifying the legal status of stablecoins issued outside the regulatory framework, prohibiting misleading or deceptive branding of stablecoin products, and establishing protections for stablecoin holders in bankruptcy cases, ensuring they receive priority over other creditors.

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Industry Reactions

Ripple CEO Brad Garlinghouse welcomed the bill’s progress, viewing it as a positive step toward regulatory clarity for the stablecoin market. He commended Senators Bill Hagerty, Cynthia Lummis, Kirsten Gillibrand, and Tim Scott for their efforts in advancing the legislation.

Stablecoin policy is on its way – big thanks to @SenatorHagerty @SenLummis @SenGillibrand and @SenatorTimScott
for their commitment with the GENIUS Act. https://t.co/nCYkebYVqE

— Brad Garlinghouse (@bgarlinghouse) March 13, 2025

As the bill moves forward, all eyes will be on the full Senate and House of Representatives to determine whether the U.S. will soon implement its first major stablecoin regulatory framework at the federal level.

Broader Implications of Stablecoin Regulation

The passage of the GENIUS Act could have significant long-term effects on both the U.S. financial system and the global cryptocurrency landscape. Establishing a clear federal framework for stablecoins would provide much-needed regulatory certainty, encouraging institutional adoption and positioning the U.S. as a leader in crypto regulation. With greater clarity, banks and payment providers may integrate stablecoins for settlements and cross-border transactions, while the dollar’s dominance in digital finance could be reinforced. However, stringent regulations might also limit competition by favoring larger issuers, potentially centralizing the market and restricting innovation within decentralized finance (DeFi).

Beyond the U.S., stablecoin regulation could set a precedent for global markets, influencing policies in other countries looking to establish their frameworks. This could help create international standards for stablecoin oversight, reducing risks associated with unregulated digital assets. However, the political and economic ramifications of the bill remain uncertain. As the 2025 election cycle approaches, regulatory debates on digital assets may intensify, with lawmakers balancing the need for financial stability against the desire to foster innovation. Ultimately, the success of the GENIUS Act will depend on how well it aligns regulatory enforcement with the evolving needs of the crypto industry.

The Senate Banking Committee’s approval of the GENIUS Act marks a pivotal moment for the U.S. crypto industry. As the bill advances through Congress, it has the potential to reshape the stablecoin market, encourage institutional adoption, and reinforce the country’s position in the global financial landscape. However, the final version of the law must strike a balance between fostering innovation and addressing regulatory concerns.

Whether the GENIUS Act ultimately strengthens the U.S. crypto ecosystem or stifles it will depend on how lawmakers navigate the complexities of digital asset regulation in the coming months.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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