The Senate Banking Committee passed the GENIUS Act with bipartisan support on an 18-6 vote, clearing the bill for the full Senate to consider.

Senator Bill Hagerty authored the bill, which received the backing of all Republican members of the Committee and Democratic Senators Mark Warner, Andy Kim, Lisa Blunt Rochester, Ruben Gallego, and Angela Alsobrooks.

The Senate Banking Committee passed the GENIUS Act, a bill aiming to establish a U.S. regulatory framework for stablecoins, with bipartisan support on an 18-6 vote on Wednesday, clearing the legislation for the full Senate to consider.

The bill, which was authored by Senator Bill Hagerty and received the support of all Republican members of the Committee and Democratic Senators Mark Warner, Andy Kim, Lisa Blunt Rochester, Ruben Gallego, and Angela Alsobrooks, passed the Committee after several months of discussion and a bipartisan effort to craft the legislation.

Hagerty expressed his satisfaction with the bill’s bipartisan support and highlighted its importance in fostering financial innovation and maintaining the U.S.’s leadership in digital assets.

“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. I look forward to seeing this bill pass the Senate in the near future and ultimately signed into law by President Trump,” Hagerty stated.

The GENIUS Act proposes a framework for stablecoins that includes mandatory 1:1 reserves, to be held in U.S. dollars, insured bank deposits, or short-term Treasury bills, ensuring the backing of each issued token.

Issuers would also have the option of federal oversight through the Office of the Comptroller of the Currency (OCC) or state-level supervision, provided that state regulations meet federal standards, creating a dual regulatory pathway.

Highlighting the importance of regulatory clarity, Committee Chairman Senator Tim Scott noted that certain industries and American consumers have been left in the dark for far too long.

“This uncertainty also stifled innovation here at home, in America. That changes today with the GENIUS Act, which is a bipartisan step forward in ensuring that stablecoins are safe and reliable tools in the financial system,” Scott added.

The Committee Chairman also mentioned taking action to “end the weaponization of financial regulators.” This statement could be linked to the bill’s content, which explicitly classifies stablecoins as non-securities, placing them outside the jurisdiction of the Securities and Exchange Commission (SEC), previously known for its “regulation by enforcement” approach.

Positive reactions

A known advocate for crypto regulation and member of the Committee, Senator Cynthia Lummis highlighted the importance of the bill’s passage out of the Committee in advancing the regulatory framework for stablecoin issuers and providing the U.S. with a competitive edge in the rapidly evolving digital asset space.

“The Senate Banking Committee’s bipartisan vote to advance the GENIUS Act is a welcome step in the right direction. This legislation is a priority for advancing the role of the U.S. in the rapidly evolving digital asset space. It provides a clear and competitive framework for stablecoins, ensuring consumer protection and financial stability while fostering innovation and promoting the efficient allocation of capital. As the House prepares to return from August recess, I urge leadership to swiftly consider and advance this important legislation,” Lummis stated.

The bill’s progress was also praised by Circle CEO Jeremy Allaire, who described it as a massive move in Washington today, highlighting the bipartisan nature of the decision and its implications.

“Congress is taking a step towards upgrading and making the dollar more competitive in the global financial system. This is a huge step towards upgrading and making the dollar more competitive,” Allaire concluded.

Coinbase chief policy officer Faryar Shirzad thanked the senators for their support as the bill passed the Senate Banking Committee.

"We're grateful for the bipartisan support for the GENIUS Act, which will provide much-needed clarity and certainty for the digital asset industry and American consumers. A big step forward!" Shirzad stated.

Finally, Blockchain Association CEO Kristin Smith said she is pleased to see the Senate Banking Committee vote to advance the GENIUS Act one step further.

"This legislation is a smart step in the right direction for American innovation and economic leadership. The House should return from August recess ready to pass this bill quickly and send it to President Trump's desk. Once enacted, the legislation will provide long-awaited clarity for stablecoin issuers and users, reinforcing the U.S.' role as a leader in digital currency regulation. This matters for the future of the U.S. dollar and the overall health of the financial system," Smith concluded.

The bill is now moving to the full Senate for a vote. If enacted, the legislation would provide long-awaited clarity for stablecoin issuers and users, reinforcing the U.S.’s role as a leader in digital currency regulation.