Major Stablecoin Bill Update: US Senate Prepares for Key Vote on Revised Stablecoin Bill

Major Stablecoin Bill Update: GOP and Democrats Align on Updated Stablecoin Framework

A Republican-led stablecoin framework bill was revised after committee Democrats were consulted, and the US Senate Banking Committee is scheduled to vote on it on March 13. One of the bill’s co-sponsors, Republican Senator Bill Hagerty, declared on March 10 that he had submitted an amended Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. On March 13, the bill will be put to a vote by the Banking Committee.

He noted that both parties consulted on the revised law. Along with Democrats Kirsten Gillibrand and Angela Alsobrooks, Republican Senators Cynthia Lummis and Tim Scott—who also serves as the chair of the Banking Committee—co-sponsored the bill.

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

GENIUS Act Gives US Stablecoins a Competitive Edge Over Foreign Issuers

Early in February, Hagerty introduced the bill. It seeks to subject issuers of US dollar stablecoins with market values greater than $10 billion to Federal Reserve restrictions. Those with less than $10 billion may choose to be regulated at the state level.

According to FOX Business reporter Eleanor Terrett, EasyA co-founder Dom Kwok stated on X that US-issued stablecoins have a competitive edge due to the most recent iteration of the GENIUS Act. The bill now imposes additional stringent restrictions on foreign stablecoin issuers in areas including reserve and liquidity requirements, money laundering checks, and sanctions checks, he noted.

Most foreign issuers will find these standards hard to meet, which gives Circle’s USDC and Ripple Labs’ Ripple USD (RLUSD) an upper hand,

Kwok

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