Senate Passes GENIUS Act Regulating Payment Stablecoins

The U.S. Senate has passed the GENIUS Act, marking a significant milestone in the regulation of payment stablecoins. This legislation is the first of its kind to focus exclusively on payment stablecoins, aiming to provide a clear regulatory framework for the digital asset sector. The bill, which received broad bipartisan support, is designed to protect consumers and enhance national security measures related to digital finance.

The GENIUS Act, officially known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was advanced by Senator Tim Scott of South Carolina. The bill was co-sponsored by Senators Bill Hagerty, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks. It passed the Senate Banking Committee in March after a thorough review of nearly 40 amendments, with support from all Republicans and five Democrats. Senator Scott highlighted that the legislation addresses the regulatory uncertainty that has long plagued the stablecoin space, emphasizing the importance of consultations with digital asset firms, legal scholars, and public officials in shaping the bill.

Ripple CEO Brad Garlinghouse praised the Senate's passage of the GENIUS Act, describing it as a landmark moment in digital asset legislation. He noted that this is the first major financial policy shift since the Dodd-Frank Act and commended the collaborative effort behind its passage. Garlinghouse, along with many in the industry, has long advocated for clearer crypto regulations from Congress. The GENIUS Act now moves to the House, where industry participants hope the momentum will continue. The bill's structured approach to stablecoin oversight is expected to influence global regulatory conversations and position the U.S. as a leader in digital finance standards.

Senator Scott's leadership in establishing rules for the digital economy has been instrumental in the passage of the GENIUS Act. As Chairman of the Senate Banking Committee, he launched the Senate’s first Subcommittee on Digital Assets, chaired by Senator Lummis. The GENIUS Act represents the committee’s first legislative milestone of the 119th Congress, promoting responsible innovation and setting the stage for the U.S. to shape international digital finance standards. With Senate approval secured, stablecoin regulation enters a new phase that could redefine crypto’s legal boundaries across the country.