TLDR
- Senate Majority Leader John Thune initiated procedures to expedite a vote on the GENIUS Act, the first U.S. stablecoin regulatory framework
- The bill passed committee with bipartisan support (18-6 vote) and awaits a full Senate vote
- Key sponsors include Senators Bill Hagerty, Tim Scott, and Cynthia Lummis
- Traditional banking advocates oppose the bill, citing concerns about “shadow deposits” and financial system risks
- The Senate GENIUS Act differs from the House’s STABLE Bill in several key areas
Senate Majority Leader John Thune (R-SD) has initiated procedures to expedite a vote on what would be the first-ever regulatory framework for stablecoins in the United States. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act aims to create comprehensive rules for stablecoins pegged to the U.S. dollar.
The bill, sponsored by Senator Bill Hagerty and co-sponsored by Senators Tim Scott (R-SC) and Cynthia Lummis (R-WY), passed out of the Senate Banking Committee in March with strong bipartisan support. The committee voted 18-6 in favor, with five Senate Democrats joining Republicans to advance the legislation.
Senator Tim Scott, who chairs the National Republican Senatorial Committee, described the bill as a “critical first step” to deliver on President Donald Trump’s “mandate to advance a regulatory framework for digital assets.” This statement highlights the political backing behind the push for stablecoin regulation.
The legislation passed through committee with Senator Hagerty expressing confidence about a full floor vote. Initially, he expected the vote to happen by the end of April, though the exact timing remains unclear.
Banking Industry Opposition
Despite its progress, the GENIUS Act faces substantial opposition from traditional banking advocates. Arthur Wilmarth, Professor Emeritus of Law at The George Washington University, has been particularly vocal in his criticism.
In March, Wilmarth wrote that the Senate stablecoin bill is “deeply flawed” and poses “grave and unacceptable dangers” to consumers and the financial system. His concerns were published in American Banker, based on a policy brief he authored in February.
Wilmarth argues that nonbank stablecoin issuers could compete with FDIC-insured banks by offering what he terms “shadow deposits.” This competition, in his view, could potentially undermine the traditional banking system.
The professor has also raised concerns that the bill could allow Big Tech companies and other commercial enterprises to acquire non-bank stablecoin issuers. This could potentially enable these entities to enter the banking industry through stablecoins.
Legislative Differences
It’s worth noting that the Senate’s GENIUS Act differs from the House of Representatives’ STABLE Bill in several key areas. The House Financial Services Committee advanced its similar bill in April.
Bo Hines, the executive director of the Presidential Council of Advisers for Digital Assets and President Trump’s self-described “crypto sherpa,” told CoinDesk that the two bills are approximately 90% similar. He noted that members of both chambers are working to resolve their differences.
Senator Hagerty indicated he would introduce an updated version of the bill as the process moves forward. The refinements may address some of the concerns raised or align the bill more closely with the House version.
The House of Representatives is expected to follow closely behind on its own voting. This parallel progress suggests momentum behind establishing a regulatory framework for stablecoins.
Senate Majority Leader Thune’s move to expedite the bill is designed to limit delays and floor action to get it passed more quickly. This fast-tracking shows the priority level assigned to stablecoin regulation by Senate leadership.
The GENIUS Act aims not only to create rules for stablecoins but also to cement U.S. dollar dominance in global finance. This broader objective places the legislation within the context of international financial competition.
The most recent development in this legislative process occurred on May 2, 2025, when Senator Thune initiated the fast-track procedures for the GENIUS Act vote.
