Senate Banking Committee Set to Vote on GOP-Backed Stablecoin Bill

The U.S. Senate Banking Committee is preparing to cast a crucial vote on the updated Guiding and Establishing National Innovation for US Stablecoin (GENIUS) Act on March 13. The bill, initially introduced by Republican Senator Bill Hagerty in early February, has now undergone revisions following bipartisan discussions.

Co-sponsored by Republican Senators Cynthia Lummis and Tim Scott, as well as Democratic Senators Kirsten Gillibrand and Angela Alsobrooks, the updated framework seeks to address key regulatory concerns surrounding stablecoin issuance in the U.S. According to Gillibrand, the new version includes improvements in consumer protections, risk management, transparency, and insolvency protocols.

At its core, the bill aims to regulate U.S. dollar stablecoin issuers with market caps exceeding $10 billion—currently limited to Tether (USDT) and Circle’s USDC—placing them under direct Federal Reserve oversight. However, issuers with smaller market caps could choose state-level regulation instead.

A Competitive Edge for U.S. Stablecoin Issuers

One of the most debated aspects of the bill is its approach to foreign stablecoin issuers. Dom Kwok, co-founder of Web3 learning app EasyA, noted that the revised bill raises the bar for non-U.S. issuers in terms of reserve requirements, liquidity provisions, money laundering controls, and sanctions compliance. He believes this could give an advantage to U.S.-based issuers like Circle’s USDC and Ripple Labs’ RLUSD, making it harder for foreign competitors to operate in the U.S. market.

Crypto legal expert Jeremy Hogan echoed this sentiment, emphasizing that the stringent Anti-Money Laundering (AML) and reserve standards outlined in the bill align well with what Circle and Ripple already comply with. This could potentially make it more difficult for offshore stablecoin to compete, ensuring that U.S.-issued digital dollars remain dominant.

Next Steps Before Becoming Law

While the upcoming committee vote is a major step, the GENIUS Act still faces a long road ahead. Should the Senate Banking Committee approve the bill, it will move to the full Senate floor for debate and a final vote. If it passes the Senate, the legislation will then go to the House of Representatives for review.

If the House makes no amendments, the bill will land on President Donald Trump’s desk, where he will decide whether to sign it into law or veto it.