The United States Senate Banking Committee will vote on a revised stablecoin regulation bill on March 13. The bill, known as the GENIUS Act, received key updates after bipartisan discussions between Republicans and Democrats.
Republican Senator Bill Hagerty initially introduced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in early February. The bill aims to provide clear federal guidelines for stablecoins—digital tokens pegged to traditional assets, typically the U.S. dollar.
Bipartisan GENIUS Act Revised After Cross-Party Talks
Senator Hagerty announced on March 10 that the bill was updated following consultations with Democrats. Prominent bipartisan supporters include Republican Senators Cynthia Lummis and Tim Scott, who leads the Senate Banking Committee, alongside Democratic Senators Kirsten Gillibrand and Angela Alsobrooks.
Senator Gillibrand talked about some key improvements in the revised bill. She said it enhances consumer protections, clarifies who can issue stablecoins, manages financial risks more effectively, and introduces stricter transparency rules. The bill also clearly outlines the steps to handle issuer insolvency, ensuring stability within the digital asset market.
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Stablecoins Over $10 Billion to Face Strict Federal Oversight Under Proposed Bill
The GENIUS Act targets stablecoin issuers with different regulatory approaches based on their market size. Stablecoins with market capitalization above $10 billion, like Tether’s USDT and Circle’s USDC, would be required to follow Federal Reserve regulations. Smaller stablecoins, valued below $10 billion, could choose to be regulated at the state level.
The bill’s focus on strict rules for large issuers aims to protect investors and consumers by ensuring these stablecoins maintain adequate financial reserves and operate transparently.
US-Based Stablecoins Could Gain Competitive Edge, Experts Say
Industry experts suggest that the updated GENIUS Act could strongly benefit U.S.-based stablecoin issuers. Dom Kwok, co-founder of Web3 educational app EasyA, noted the updated bill imposes stricter requirements on foreign stablecoin issuers. These foreign issuers would need to meet higher standards for reserves, liquidity, money laundering checks, and sanctions compliance.
Kwok believes these new standards will be challenging for many foreign companies to meet. He suggested that U.S.-based stablecoins, particularly Circle’s USDC and Ripple Labs’ Ripple USD (RLUSD), could gain a competitive advantage.
Crypto lawyer Jeremy Hogan also agreed, saying the new guidelines favor stablecoins like USDC and RLUSD due to their established compliance with U.S. financial regulations.
Despite bipartisan support, the GENIUS Act still faces several legislative hurdles before becoming law. After the Banking Committee’s vote on March 13, the bill must pass a full Senate vote, where it could face further debate and possible amendments.
If the Senate approves the bill, it will move to the House of Representatives. Should the House pass it without further changes, the GENIUS Act will reach President Donald Trump’s desk for either final approval or veto.
