The United States is making significant strides toward establishing a regulatory framework for stablecoins, as the Senate Banking Committee has given the green light to the GENIUS Act.

This milestone comes after an 18-6 vote in favor of the legislation, moving the country one step closer to comprehensive oversight of digital assets.

The Senate Banking Committee has approved the GENIUS Act, setting the stage for the U.S. to introduce its first major stablecoin regulatory framework at the federal level.

The vote, which took place on Thursday, follows an extensive two-hour debate among committee members, advancing the legislation to the full Senate for further consideration. A similar version of the bill is also being reviewed by the House of Representatives. Both chambers must reconcile any differences in their respective versions before a final bill can be presented to President Trump for his signature.

The GENIUS Act, which stands for the "Guiding and Establishing National Innovation for U.S. Stablecoins Act," aims to implement federal guidelines for stablecoin issuers, ensuring their compliance and safeguarding financial stability. The bill would also position the U.S. as a leader in digital asset regulation, encouraging private-sector innovation in the cryptocurrency market.

"This bipartisan legislation will provide clear regulatory guidance for U.S. investors and ensure that innovation in this rapidly developing sector continues in the United States, rather than being driven overseas," said Senator Tim Scott (R-SC), a member of the committee.

The bill's progress comes amid ongoing efforts to introduce a comprehensive regulatory framework for digital assets in the U.S. Earlier this year, the House Financial Services Committee approved a broader bill that covers both stablecoins and other cryptocurrencies.

However, the Senate Banking Committee's approval of the GENIUS Act marks a significant milestone, setting the stage for the first federal-level regulation of stablecoin issuers and establishing clear rules for their operations.

The bill has faced criticism from some Democrats, who argue for additional safeguards and restrictions. Senator Elizabeth Warren (D-MA), a well-known opponent of cryptocurrencies, expressed concerns about the bill's timing and potential implications for national security.

"We'll regret this!" Senator Warren warned, referring to her skepticism about reports suggesting President Trump may be exploring the creation of a government-backed stablecoin in partnership with a controversial firm.

The reports, published in the Wall Street Journal, claim that Trump's family initiative, World Liberty Financial, has engaged in discussions with Binance about a joint venture to launch a stablecoin pegged to the U.S. dollar. Furthermore, the reports suggest that Binance sought a presidential pardon for its founder, Changpeng Zhao (CZ), in exchange for the business arrangement.

However, CZ has vehemently denied these claims, calling the report "misleading" and stating that he never sought a pardon and that no deal with Trump's family was reached.

Despite these denials, Senator Warren remains skeptical, arguing that advancing the stablecoin bill under such circumstances could have negative consequences.

"The administration is reportedly trying to intervene in the Justice Department’s investigation into Binance to help Binance get a pardon for its CEO in exchange for a partnership to create a Trump family-branded stablecoin," Senator Warren stated.

"This is the kind of corrupt activity that the president should be focused on, not concocting new ways to enrich his family at the taxpayer's expense," she added.

As the bill moves forward in the full Senate and House, both chambers will need to reconcile any differences in their respective versions of the bill before it can be presented to President Trump for his signature.

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