Will a Stablecoin Bill Shape the Future of Crypto Regulation?

The GENIUS Act, a proposed stablecoin law, has advanced to the full Senate after receiving an 18-6 approval from the Senate Banking Committee on March 13th. According to Bloomberg, the measure, which emphasizes crypto regulation, is on the “fast track” as part of President Donald Trump's policy objectives.

Senator Bill Hagerty (R-Tennessee), the bill's sponsor, expressed confidence about its development. In a post on X (previously Twitter), he emphasized the bill's importance in establishing a pro-growth regulatory environment that promotes crypto innovation while preserving financial system stability.

“This legislation is a critical first step in establishing a safe and pro-growth regulatory framework that will unleash innovation and advance the President's mission to make America the world capital of crypto,” Hagerty told reporters. “I look forward to seeing this bill pass the Senate in the near future and ultimately signed into law by President Trump.”

While the measure has gained traction, it is also met with resistance. Senator Elizabeth Warren (D-Mass.) raised worries about consumer protection and financial stability. She warned that the present law lacked critical protections, potentially jeopardizing the financial system.

“If we can find compromises on these issues today, I'm willing to support this bill,” Warren said before the vote. “If not, I'll work to defeat it.” Because we will not have another chance to do this correctly, and we will all have to live with the repercussions of what we do here today.

The GENIUS Act is intended to establish a regulatory balance between state and federal control. It keeps smaller stablecoin issuers under state oversight while bringing bigger suppliers under federal control. This strategy aims to promote cryptocurrency growth while maintaining appropriate financial protections.

Meanwhile, the House Financial Services Committee is developing identical legislation. The committee's chairman, Rep. French Hill (R-Ark.), commended the Senate's efforts while emphasizing the importance of a government framework for payment stablecoins.

“I look forward to continuing our work with our Senate counterparts to enact a bicameral bill that provides a clear federal framework for payment stablecoins,” Hill said in a post published by the Financial Services Republican Party.

With the GENIUS Act now proceeding to the full Senate, the argument over stablecoin regulation is expected to heat up, influencing the future of crypto law in the United States.