The Senate Banking Committee made a major move to control stablecoins when its members voted 18-6 to bring forward the GENIUS Act. The Senate Banking Committee took this bill aimed at making stablecoin laws national-level and sent it to the full Senate for evaluation.

Four senators Bill Hagerty (R-Tenn.), Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Angela Alsobrooks (D-Md.) cooperate to present the GENIUS Act. Under this law payment stablecoins are understood as digital assets connected to specific money amounts intended for financial transactions. 

For far too long, certain industries and American consumers have been left in the dark.

That changes today with the GENIUS Act – a bipartisan step forward that will provide regulatory clarity for payment stablecoins. pic.twitter.com/H44W25dJzh

— U.S. Senate Banking Committee GOP (@BankingGOP) March 13, 2025

Senate Banking Committee Debates Bill’s Merits

Sterling suggests oversight for financial institutions by the Federal Reserve while non-bank issuers must follow oversight by the Comptroller of the Currency. The law governs any company managing over $10 billion in payment stablecoins. Small issuers would stay regulated by states while most could ask for permission to keep state-level control.

Lawmakers engage in strong arguments about the advancement of this bill. Chairman Scott of the Senate Banking Committee wants solid regulations to defend people’s money while letting new financial ideas come forward. The Senator called this legislation a bipartisan initiative designed to create strength for the fast-developing stablecoin industry.

However, opposition remains. Senator Warren from Massachusetts did not support the measure because she saw national security threats and feared that regulations could have weaknesses. She wanted more oversight because Trump spoke with a Binance company during his presidential term before reports appeared. 

The Banking Committee’s strong bipartisan passage of the GENIUS Act out of committee brings us one step closer to providing stablecoin issuers with choice between state and national charters & will secure our nation’s competitive edge in the rapidly evolving digital asset space.

— Senator Cynthia Lummis (@SenLummis) March 13, 2025

Warren proposed new compliance standards which failed to pass because Democrats and Republicans opposed each other. Senator Catherine Cortez Masto (D-Nev.) wanted the bill enhanced before recognizing it as a viable solution. 

According to Chairman Scott, extensive work was conducted by the committee to complete their version of the legislation before Republican colleagues cut off discussion about proposed changes to it.

Stablecoin Industry Awaits Regulatory Clarity

The industry watches the bill move forward because it needs stablecoin regulations and earlier bills did not pass. The GENIUS Act works alongside other proposed legislation like the Clarity for Payment Stablecoins Act and the Lummis-Gillibrand Payment Stablecoin Act because Congress is actively creating a framework to monitor online asset trading markets.

Under the GENIUS Act companies must produce accurate monthly reserve reports to the public with direct penalties for breaking these rules. Market experts believe that stablecoin rules will reshape digital asset markets because stablecoins represent more than 1% of all US M2 money supply. 

Analysts with S&P Global explained in February 2025 that corporations would hold back their adoption if no specific government rules appeared. Given Republican majorities in both congressional branches they will push the bill ahead efficiently. 

Senate team members believe that the speed of the House proceeding will match their own since both bodies have the same stablecoin legislation draft. After the House and Senate pass their separate legislature they need to unite their changes into one document before the President Trump signs it.

As the stablecoin regulation talks progress the essential issue remains whether the GENIUS Act will find the perfect blend between market progress and watchful controls. Although the bill creates stability and protects customers many think it will make the US lose ground to other nations in cryptocurrency leadership.

Congress will decide if America will lead or lag in worldwide financial change while also setting rules for stablecoins that grow stronger in US banking operations.