US Senate Banking Committee Backs Stablecoin Regulation Bill

The US Senate Banking Committee has approved a bill introduced by Senator Bill Hagerty to regulate stablecoins at the federal level.

During the hearings, 18 votes were cast in favor and six against.

The document will next be considered by the full upper chamber of Congress.

During the committee meeting, some provisions of the bill faced objections from Democratic Party members. Senator Elizabeth Warren described it as a “clear threat to national security” in its current form. However, none of the proposed amendments were adopted.

“It would be madness to push this bill forward when there are so many holes already pointed out, and to support it at the very moment when news emerges that [President] Donald Trump is trying to create his own stablecoin with an organization notoriously known for breaking the law,” Warren stated towards the end of the hearings.

She was likely referring to reports of negotiations between the Trump family and the Bitcoin exchange Binance. The platform’s co-founder, Changpeng Zhao, denied the information. In 2023, the businessman paid a $50 million fine and received four months in prison on criminal charges related to money laundering. Financial penalties for the exchange amounted to $4.32 billion.

Republican Hagerty, who introduced the “Guidance and Establishing National Innovations for US Stablecoins Act” (GENIUS Act), called the document a “truly bipartisan effort.” The bill’s co-authors are Democratic Senators Kirsten Gillibrand and Angela Alsobrooks.

According to Hagerty, the bill represents “common-sense rules that protect consumers, promote competition, and stimulate innovation.”

In the House of Representatives, Congressmen French Hill and Bryan Steil are advancing their own stablecoin regulation bill.

The digital asset markets working group formed by Trump in January has identified the development of a regulatory framework for “stable coins” as a priority.

The market capitalization of the stablecoin segment has reached $236 billion, surpassing that of Ethereum.

According to the FT, some global banks and fintech companies plan to launch their own coins to capture a share of the rapidly growing market.