GENIUS Act Advances: Senate Banking Committee Gives Thumbs Up

The United States Senate Banking Committee has decided to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in an 18-6 vote. 🎉

Senator Elizabeth Warren’s proposed amendments, including limiting stablecoin issuance to banking institutions, were not included in the bill. Warren argued that the bill, without changes, would “supercharge the financing of terrorism” and make sanctions evasion by Iran, North Korea, and Russia easier. 💣

Senator Tim Scott, chairman of the Senate Banking Committee, called the bill a victory for innovation. He said, “The GENIUS Act establishes Common Sense rules that require stablecoin issuers to maintain reserves backed one-to-one, comply with anti-money laundering laws, and ultimately protect American consumers while promoting the US dollar‘s strength in the global economy.” 💼

“The GENIUS Act is a triumph for innovation and consumer protection. It’s like a breath of fresh air in the world of stablecoins.” – Senator Tim Scott

The bill must still pass a vote in both chambers of Congress before it is turned over to President Trump and ultimately signed into law. 📜

However, the Senate Banking Committee advancing the bill represents the first step in clear, comprehensive legislation requested by the crypto industry. 💻

GENIUS Act Gets a Makeover: Stricter Provisions Added

Senator Bill Hagerty, who introduced the bill in February 2025, defended the legislation against the proposed amendments from Senator Warren, arguing that the bill already includes provisions for consumer protection, Anti-Money Laundering, and crime prevention. 👮‍♂️

On March 10, Hagerty announced that the bill was updated to include stricter reserve requirements for stablecoin issuers, AML provisions, safeguards against terrorist financing, transparent risk management procedures, and stipulations for sanctions compliance. 🔒

Dom Kwok, founder of the Web3 learning platform Easy A, said the newly added provisions will make it harder for foreign stablecoin issuers to comply, giving US-based firms a competitive edge. 🇺🇸

Attorney Jeremy Hogan said the GENIUS Act signals an impending merger of the traditional financial system with stablecoins. He wrote in a March 10 X post, “The legislation is explicitly making plans for stablecoins to interact with the traditional digital banking system. The ‘merge’ is being planned.” 🤝

During the March 7 White House Crypto Summit, US Treasury Secretary Scott Bessent explicitly said that the Trump administration would leverage stablecoins to protect the US dollar’s global reserve status. 💲

2025-03-13 22:25

GENIUS Act Gets a Makeover: Stricter Provisions Added

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