US Stablecoin Bill Set for Senate Banking Committee Vote After Updates

The US Senate Banking Committee is scheduled to vote on the updated Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on March 13. The bill, initially introduced by Republican Senator Bill Hagerty in early February, has undergone significant revisions following bipartisan discussions and consultations, aiming to bring clarity and regulation to the growing stablecoin market.

The revised version of the bill includes feedback from both Republican and Democratic committee members, with Hagerty noting the improvements made in consumer protections, authorized stablecoin issuers, risk mitigation, state-level pathways, insolvency procedures, and transparency measures. The updated GENIUS Act seeks to bring issuers of US dollar-pegged stablecoins with market caps exceeding $10 billion—currently only Tether (USDT) and Circle’s USDC—under the oversight of the Federal Reserve. Stablecoin issuers below the $10 billion threshold would be able to choose between state-level regulation or opting into the federal framework.

Bipartisan Support and Key Provisions

The bill, co-sponsored by Senators Cynthia Lummis and Tim Scott, the latter also serving as the Chair of the Senate Banking Committee, has gained significant bipartisan support. Democratic Senators Kirsten Gillibrand and Angela Alsobrooks have also backed the legislation. Senator Gillibrand expressed her approval of the updated bill, highlighting its focus on improving consumer protections and ensuring greater stability within the growing stablecoin market.

“The updated version of the GENIUS Act makes significant improvements to a number of important provisions, including consumer protections, authorized stablecoin issuers, risk mitigation, state pathways, insolvency, transparency, and more,” Gillibrand said in a statement.

Competitive Advantage for US Issuers

One of the key aspects of the revised bill is its impact on foreign stablecoin issuers. According to Web3 education platform EasyA’s co-founder, Dom Kwok, the latest version of the GENIUS Act gives US-issued stablecoins a competitive edge. Foreign stablecoin issuers will be held to stringent requirements in areas such as reserve and liquidity standards, as well as money laundering and sanctions compliance.

Kwok noted that many foreign issuers are likely to struggle to meet these stringent requirements, which could give US-based issuers like Circle’s USDC and Ripple Labs’ proposed Ripple USD (RLUSD) a significant advantage in the global stablecoin market. Crypto lawyer Jeremy Hogan shared a similar sentiment, pointing out that the bill’s reserve and anti-money laundering provisions align perfectly with the needs of US-based stablecoin issuers like USDC and RLUSD.

Next Steps for the GENIUS Act

While the updated GENIUS Act has garnered attention and support, it still faces several hurdles before it can become law. First, the Senate Banking Committee must vote to pass the bill. If approved, it will proceed to the full Senate for further debate and a floor vote. Should the Senate pass the bill, it will then move to the House of Representatives, where it could face amendments. If the House approves the bill without changes, it will be sent to President Donald Trump for final approval or veto.

The GENIUS Act represents a significant step toward establishing a regulatory framework for stablecoins in the US, with potential long-term implications for the broader cryptocurrency industry. As the stablecoin market continues to grow, the bill's passage could provide much-needed clarity and guidance for issuers, investors, and regulators alike.