The United States Senate Banking Committee has advanced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in an 18-6 vote. Despite some opposition from Democrat lawmakers, the bill has garnered bipartisan support. Notably, Senator Elizabeth Warren's amendments-such as limiting stablecoin issuance to banking institutions-were rejected. Warren raised concerns that the bill, as is, could facilitate illicit financial activities, including terrorism financing and sanctions evasion.

Senator Tim Scott, Chair of the Senate Banking Committee, praised the bill as a victory for innovation, stating that it sets clear rules for stablecoin issuers. These include requiring one-to-one reserves, compliance with anti-money-laundering laws, and stronger safeguards to protect American consumers, all while reinforcing the US dollar's position in the global economy.

The bill has undergone revisions to include stricter provisions, including enhanced anti-money-laundering measures, provisions to combat terrorist financing, and new safeguards to ensure sanctions compliance. Senator Bill Hagerty, who introduced the bill in February 2025, defended these updates against Warren's proposals, arguing that the legislation already includes strong consumer protections and crime deterrence provisions. Legal experts suggest that the GENIUS Act is setting the stage for the integration of stablecoins with the traditional financial system.

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