The U.S. cryptocurrency industry is one step closer to achieving stablecoin regulation after the Senate Banking Committee approved the GENIUS Act. The bill, officially known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, received an 18-6 vote in favor on Thursday, marking a significant milestone on its path to becoming law under President Donald Trump’s administration.
With this approval, the bill will now move to the full Senate for further deliberation. Meanwhile, a similar version of the GENIUS Act is still under review in the House of Representatives. Both versions must be reconciled before the legislation can be signed into law, paving the way for federal oversight of stablecoin issuers.
The approval came after an intense two-hour committee hearing where bipartisan support was evident, although some Democratic senators pushed for additional regulatory controls. Crypto skeptic Senator Elizabeth Warren voiced her opposition, arguing that the bill could pose national security risks. During the hearing, she criticized the decision to advance the legislation, referencing reports that the President’s family project, World Liberty Financial, was allegedly exploring a partnership with Binance—a company she described as having a history of legal troubles.
Warren cited a Wall Street Journal report that suggested Binance had sought a presidential pardon for its founder, Changpeng Zhao (CZ), in exchange for a business arrangement with World Liberty. However, CZ refuted these claims, stating that the report was misleading. Despite this, Warren remained firm in her stance, warning, “We’ll regret this!”
On the other hand, Republican members of the Senate Banking Committee defended the bill’s passage. Senator Tim Scott, who chaired the committee, emphasized that the approval reflects a commitment to providing U.S. investors with regulatory clarity. He argued that advancing the stablecoin bill would “keep innovation on American soil rather than driving it overseas.”
Prior to its approval, the committee incorporated several bipartisan amendments to the GENIUS Act. Pro-crypto journalist and Crypto America Podcast host Eleanor Terrett highlighted some of these key changes, which include clarifications on payment stablecoins issued by non-permitted entities, prohibitions against deceptive stablecoin names, and the prioritization of stablecoin customers over creditors in bankruptcy cases.
Ripple CEO Brad Garlinghouse welcomed the development, stating that stablecoin regulation is finally progressing in the U.S. He expressed appreciation for the efforts of key lawmakers, including Senators Bill Hagerty, Cynthia Lummis, Kirsten Gillibrand, and Tim Scott, for their contributions to advancing the GENIUS Act.
As the bill moves through the legislative process, its implications for the cryptocurrency market will be closely watched. If passed into law, the GENIUS Act could establish a regulatory framework that shapes the future of stablecoins in the United States, reinforcing the country’s role as a leader in blockchain innovation and financial technology.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist