The Senate Banking Committee has approved the advancement of the GENIUS Act, a bill on the regulation of stablecoins, with a vote of 18-6. This represents a significant development for the cryptocurrency sector, which has long been calling for clear and comprehensive legislation.
The initial approval of the bill was the result of a bipartisan effort, despite the opposition of some Democratic lawmakers. Among the main criticisms were those of Senator Elizabeth Warren, who expressed concerns about the potential risks of terrorism financing and evasion of international sanctions.
GENIUS Act: Elizabeth Warren’s Criticism of the New Regulation for Stablecoins
Elizabeth Warren firmly opposed the current text of the GENIUS Act, emphasizing that without changes, the legislation could facilitate the financing of terrorism. Additionally, she highlighted how the bill risks making it easier for countries like Iran, North Korea and Russia to circumvent economic sanctions.
Among the amendments proposed by the senator and subsequently rejected, there was the idea of limiting the issuance of stablecoin exclusively to banking institutions. This proposal aimed to strengthen control over entities capable of generating digital coins pegged to traditional currencies. However, none of her amendments were included in the final bill.
Tim Scott’s Vision and the Role of Innovation
On the other hand, the president of the Senate Banking Committee, Tim Scott, has welcomed the advancement of the GENIUS Act, calling it “a victory for innovation”. The senator highlighted how the legislation will introduce clear and sensible rules for the stablecoin sector.
Scott highlighted key points of the law, including:
– Obligation for stablecoin issuers to maintain 1:1 guaranteed reserves
– Compliance with anti-money laundering regulations
– Protection of US consumers
– Support for the position of the US dollar in the global economy
Updates to the GENIUS Act: increased control and security
The bill, introduced in February 2025 by Senator Bill Hagerty, has undergone several revisions aimed at strengthening protections for the financial system.
On March 10, Hagerty announced that the GENIUS Act would include:
– Greater transparency in risk management
– Stricter restrictions for the holding of stablecoin reserves
– **Stricter rules for compliance with anti-money laundering (AML) regulations**
– Measures aimed at preventing the financing of terrorism
– Clear directives for compliance with economic sanctions
According to Dom Kwok, founder of the Web3 learning platform Easy A, these new provisions could make it more difficult for foreign issuers to comply with U.S. regulations, favoring local companies.
The impact of the GENIUS Act on the financial sector
The preliminary approval of the bill is seen as the first step towards an integration between the traditional banking system and stablecoins. Lawyer Jeremy Hogan explained that the legislation is clearly outlining a future in which stablecoins will play a central role in the digital financial system.
In a post published on March 10 on the X platform (formerly Twitter), Hogan stated that the legislation is laying the groundwork for a merger between stablecoins and traditional digital banks.
This view was reinforced during the Crypto Summit at the White House on March 7, when Treasury Secretary Scott Bessent stated that the Trump administration plans to leverage stablecoins to maintain the US dollar as the global reserve currency.
Towards the final approval
Despite the positive vote in committee, the GENIUS Act still needs to be approved by both chambers of Congress before it can be submitted to President Donald Trump for the final signature.
The cryptocurrency industry is now eagerly awaiting future developments. The potential implementation of the regulation could represent a turning point for the regulation of stablecoins in the United States, finally providing clear rules for operators and investors.
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