Senator Hagerty’s stablecoin bill clears Senate Banking Committee

The Senate Banking Committee passed the GENIUS Act on Thursday, a bill creating a regulatory framework for stablecoins, with an 18-6 vote.

This moves the bill to the Senate floor, where lawmakers will decide whether to send it to President Donald Trump for approval within his first 100 days in office.

Senator Bill Hagerty led the legislation with support from Tim Scott, the committee’s chairman, as well as Senators Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks. The bill is designed to provide clear legal guidelines for stablecoin issuers, allowing them to operate under state or federal oversight.

Hagerty said, “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.”

Lawmakers applaud Hagerty’s bill

Scott, who oversaw the committee’s vote, argued that the lack of stablecoin regulations had left consumers unprotected and businesses without legal certainty. He described the bill as the first step in making sure stablecoins are reliable financial tools.

“Today’s historic passage of the GENIUS Act – the first digital assets legislation to advance in the Senate – is a step forward in ensuring stablecoins are safe and reliable tools in the financial system. I look forward to voting for this bill on the Senate floor and getting it to President Trump’s desk,” said Scott.

Gillibrand pointed to the economic effects, saying that clear stablecoin rules help keep the U.S. competitive.

Gillibrand said, “Clear and sensible stablecoin legislation is essential to maintaining the U.S.’s position as the leader in global economic competitiveness. This important legislation will protect consumers, foster responsible innovation, increase access to basic financial services, and maintain the dominance of the U.S. dollar. I expect we will continue to refine the bill as it moves forward.”

Cynthia meanwhile focused on the bill’s importance to crypto companies, saying it allows stablecoin issuers to choose between state and federal licensing, giving them more flexibility. She said, “The Banking Committee’s strong bipartisan passage of the GENIUS Act out of committee brings us one step closer to providing stablecoin issuers with the choice between state and national charters and will secure our nation’s competitive edge in the rapidly evolving digital asset space.”

The GENIUS Act bill introduces strict requirements for stablecoin issuers, including mandatory 1:1 reserves. This means that every issued stablecoin must be backed by U.S. dollars, insured bank deposits, or short-term Treasury bills. The goal is to prevent liquidity crises and protect users from insolvent issuers, according to Hagerty.

Another big part of the bill is the dual regulatory structure it has. Stablecoin issuers will have two options: they can either register with the Office of the Comptroller of the Currency (OCC) for federal oversight or operate under state regulations, so long as the rules align with federal standards.

Industry elites have also responded to the bill’s passage. In an X post, Circle CEO Jeremy Allaire called it a major win for stablecoin regulation, emphasizing the bipartisan support behind the vote.

A massive move in Washington today. The GENUIS Act passed out of Senate Banking with a strong and bi-partisan 18-6 vote. This is a huge step towards providing regulatory clarity for stablecoins, and a huge step towards upgrading and making the dollar more competitive.

— Jeremy Allaire – jerallaire.arc (@jerallaire) March 13, 2025

David Sacks, the White House’s AI and crypto, also posted on X that: “Great progress on stablecoins today!” Ripple’s Brad Garlinghouse and Coinbase’s Faryar Shirzad also commended Senator Hagerty for all his hard work as the Trump administration works on becoming fully pro-crypto.