Good news for the U.S. crypto space! Stablecoin regulation is taking a significant leap forward as the Senate Banking Committee just gave the green light to the GENIUS Act.

This important approval happened on Thursday, with a strong 18-6 vote in favor of the bill. This vote is a major milestone, bringing the stablecoin bill closer than ever to potentially being signed into law by President Donald Trump. And just so you know, GENIUS is actually an acronym – it stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act.

What Happens Next?

Now that the Senate Banking Committee has given its thumbs-up, the GENIUS Act is heading to the full Senate for a vote. Interestingly, there’s also a similar version of the GENIUS Act making its way through the House of Representatives, waiting for its own approval.

So, here’s the deal: both versions of the bill need to be combined into one before it can officially become law. This unified bill would then set the rules for stablecoin issuers right across the country at the federal level.

Behind the Scenes: Debates and Approval

This approval wasn’t just a quick vote; it followed a thorough committee hearing lasting over two hours. While the GENIUS Act garnered support from both sides of the aisle, some Democratic Senators felt it needed more. They proposed adding regulatory limits and controls to the bill.

As expected, crypto skeptic Senator Elizabeth Warren from Massachusetts voiced her concerns about passing the GENIUS Act. She argued that it could create risks to national security.

During the hearing, her criticism sharpened around reports that the President might be exploring creating his own stablecoin through a partnership with a company she described as ‘notorious for breaking the law.’

The report Senator Warren mentioned refers to alleged talks between Trump’s family project, World Liberty Financial, and Binance. According to the Wall Street Journal, Binance apparently considered offering a presidential pardon for its founder, Changpeng Zhao (CZ), in exchange for a business deal with World Liberty. However, CZ himself has refuted this, calling the WSJ report misleading.

Despite CZ’s denial, Senator Warren remains unconvinced and believes it’s inappropriate to move forward with the GENIUS Act while these rumors swirl. She even warned, “We’ll regret this!”

On the other hand, Republicans on the Senate Banking Committee, including Senator Tim Scott, defended the process. Senator Scott, who is also the Committee Chair, highlighted that this approval demonstrates the Committee’s dedication to providing clear regulations for U.S. investors in the crypto space.

He believes that advancing the stablecoin bill is crucial to “keep innovation on American soil rather than driving it overseas,” suggesting it’s about maintaining America’s leading position in the evolving world of crypto.

What’s New? Amendments to the Act

Interestingly, before giving its approval, the committee added some bipartisan amendments to the GENIUS Act. Eleanor Terrett, a well-known crypto journalist and host of the Crypto America Podcast, pointed out some of these changes in a tweet just yesterday.

These amendments include clearer definitions for payment stablecoins not issued by authorized companies, a rule against using misleading names for stablecoins, and an important protection for stablecoin customers, prioritizing them over other creditors if a stablecoin issuer goes bankrupt.

Ripple CEO Shares His Thoughts

Reacting to this significant development, Ripple CEO Brad Garlinghouse announced that stablecoin regulation is indeed moving forward in the United States.

He made sure to give credit and thanks to Senators like Bill Hagerty, Cynthia Lummis, Kirsten Gillibrand, and Tim Scott, acknowledging their hard work and commitment to the GENIUS Act.

Stablecoin policy is on its way – big thanks to @SenatorHagerty @SenLummis @SenGillibrand and @SenatorTimScott
for their commitment with the GENIUS Act.

— Brad Garlinghouse (@bgarlinghouse) March 13, 2025