US Senate Banking Committee to Vote on Updated GENIUS Act for Stablecoin Regulation
The US Senate Banking Committee is preparing to vote on the Republican-led stablecoin framework bill known as the GENIUS Act on March 13. This bill has undergone significant revisions following bipartisan discussions, with input from both Democratic and Republican senators. Co-sponsor Senator Bill Hagerty announced the updated version on March 10, emphasizing its improvements in key areas such as consumer protections, authorized stablecoin issuers, risk mitigation, and transparency. The bill aims to regulate US dollar stablecoin issuers with market caps exceeding $10 billion, primarily targeting Tether (USDT) and Circle’s USDC, under Federal Reserve oversight, while allowing smaller issuers to choose state-level regulation.
The latest updates to the GENIUS Act have sparked discussions within the crypto community, particularly regarding the competitive landscape for stablecoins. Dom Kwok, co-founder of the Web3 learning app EasyA, noted that the bill provides US-issued stablecoins with a competitive advantage over foreign counterparts. The updated legislation imposes stringent standards on foreign stablecoin issuers concerning reserve and liquidity requirements, as well as compliance with anti-money laundering regulations. This could potentially disadvantage many foreign issuers, giving USDC and Ripple Labs’ Ripple USD (RLUSD) an edge in the market.
Despite these advancements, the GENIUS Act still faces hurdles before it can be enacted into law. Following the Senate Banking Committee’s vote, the bill will proceed to a full Senate floor vote, where it will be subject to further debate. If it successfully passes through the Senate, it will then move to the House of Representatives. Should the House approve the bill without amendments, it will be sent to President Donald Trump for final approval or veto. The outcome of this legislative process could significantly shape the regulatory landscape for stablecoins in the United States.
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