US Senate Banking Committee Votes to Advance Stablecoin Bill

The Senate Banking Committee has taken its first big step toward advancing its stablecoin bill in the United States. 

It voted to push the bill to the full Senate while receiving support from even Democrats in the bloc. This marks a major step toward getting the legislation to President Donald Trump’s desk to be signed into law. 

Stablecoin Bill Receives Support From Democrats

Senator Bill Hagerty, R-Tenn., introduced this bill in February to create a regulatory framework for stablecoins. 

The Guiding and Establishing National Innovation for US Stablecoins “GENIUS Act” defines the jurisdiction of the state and federal authorities over stablecoins. Senate Banking Committee Chair Tim Scott, R-S.C., described the bill as,

“a bipartisan step forward in ensuring stablecoins are safe and reliable tools in the financial system.”

It has gained support from bipartisans like Democratic Sens. Angela Alsobrooks of Maryland and Kirsten Gillibrand of New York. However, the supporting party grew when the Senate Banking Committee voted 18-6 to advance the bill. 

This is a significant milestone, considering several Washington lawmakers have failed to establish stablecoin regulatory frameworks.

Congress Investigates Operation Chokepoint 2.0 

Clearly, Trump’s administration is prioritizing cryptocurrencies, and Congress is getting more involved in the industry. 

Apart from supporting the implementation of stablecoin regulation, they have been more attentive to the talks about Operation Chokepoint 2.0. The US Congress has launched an investigation into crypto industry-wide debunking claims. 

Coinbase has been on the matter, criticizing the Federal Deposit Insurance Corporation (FDIC) for its refusal to cooperate in the Operation Chokepoint 2.0 investigation. With Congress’s involvement, FDIC has been mandated to provide the requested information, including unredacted versions of pause letters.

US Creates Strategic Bitcoin Reserve 

A week ago, President Trump signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. According to White House AI and crypto czar David Sacks, this move is aimed at storing seized cryptocurrencies obtained through criminal and civil cases.

The US government will hold these Bitcoins from forfeiture of criminal activities for a long time instead of selling them. On the other hand, non-Bitcoin assets would be held separately in the Digital Asset Stockpile but will still be under the management of the Treasury Department.