The Senate Banking Committee has advanced the GENIUS stablecoin bill. Although some Democratic lawmakers opposed the GENIUS stablecoin legislation, members from both parties contributed to its progression.
The U.S. Senate Banking Committee approved the Guiding and Establishing National Innovation (GENIUS) Act by voting 18-6 in favor.
The committee rejected every amendment suggested by Senator Elizabeth Warren, including her proposal to allow only banks to issue stablecoins.
“Without changes, this bill will supercharge the financing of terrorism. It will make sanctions evasion by Iran, North Korea, and Russia easier,” Warren argued.
Senator Tim Scott, chairman of the Senate Banking Committee, hailed the bill as a success for innovation. The Senator 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.”
Before President Trump can sign the bill into law, both the House and the Senate must pass it.
By advancing the bill, the Senate Banking Committee has taken its first step toward crafting the well-defined and comprehensive legislation that the crypto industry has called for.
In response to Senator Warren’s suggested changes, Senator Bill Hagerty, who introduced the bill in February 2025, defended it by emphasizing that it already includes protections against financial crimes and ensures consumer safety.
According to Hagerty’s March 10 announcement, the bill now enforces stricter reserve rules for stablecoin issuers, reinforces AML policies, strengthens anti-terrorism financing safeguards, enhances risk management transparency, and tightens compliance measures for sanctions.
The new regulatory requirements will complicate compliance for foreign stablecoin issuers, ultimately favoring US-based companies, according to Dom Kwok, founder of Easy A.
Attorney Jeremy Hogan views the GENIUS Act as a sign of the growing intersection between stablecoins and the established financial system.
“The legislation is explicitly making plans for stablecoins to interact with the traditional digital banking system. The ‘merge’ is being planned,” the attorney wrote in a March 10 X post.
During the White House Crypto Summit on March 7, Treasury Secretary Scott Bessent emphasized that the Trump administration would rely on stablecoins to help preserve the US dollar’s role as the global reserve currency.
