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Senate Fast-Tracks GENIUS Act to Establish First Federal Stablecoin Regulations

Majority Leader John Thune accelerates Senate vote on bipartisan legislation defining stablecoin oversight, licensing, and reserve requirements.

John Thune (Anna Moneymaker/Getty Images)
Sens. Kirsten Gillibrand and Chuck Schumer at a news conference outside the U.S. Capitol in February. Photo: Anna Moneymaker/Getty Images
U.S. Senate Majority Leader John Thune (R-SD) speaks to press outside the Senate Chambers during a Senate "vote-a-rama" on February 20, 2025 in Washington, DC. The Senate is holding an all-night marathon vote, referred to as a "vote-a-rama", as Republicans look to pass their GOP budget resolution. (Kayla Bartkowski/Getty)

Overview

  • The GENIUS Act, authored by Senator Bill Hagerty and co-sponsored by Senators Tim Scott and Cynthia Lummis, proposes the first federal regulatory framework for stablecoins in the U.S.
  • Senate Majority Leader John Thune initiated expedited procedures to bring the bill to a floor vote following an 18-6 bipartisan committee approval.
  • The legislation outlines licensing standards, reserve requirements, and oversight for stablecoin issuers, aiming to modernize payments and reinforce U.S. dollar dominance.
  • The Senate and House bills share significant similarities but differ on reserve asset eligibility and treatment of algorithmic stablecoins, with reconciliation talks ongoing.
  • Traditional banking advocates criticize the bill, citing risks to consumers and concerns over competition with FDIC-insured banks, while the Trump administration pushes for swift passage before the August recess.