Senate Passes Stablecoin Legislation With Bipartisan Support

The Senate’s proposal to regulate stablecoins passed the chamber in June with support from both parties, sending it on to the House where lawmakers are still working on their own proposal.

The so-called GENIUS Act passed the floor with 68 votes, 18 of which came from Democrats. The bill now moves on to the House, which so far has created its own bill to regulate stablecoins, the STABLE Act.

The GENIUS Act sets standards for issuers of payment stablecoins, stable-value tokens fully backed by assets to keep their value permanently on par with the U.S. dollar. Before the floor vote, the bill’s sponsors, Sens. Bill Hagerty, R.-Tenn., and Cynthia Lummis, R.-Wyo., argued the bill will protect dollar dominance, drive demand for U.S. Treasury bonds and keep consumers safe while drawing stablecoin issuers to the U.S.

As the bill heads on to the House, lawmakers will have to iron out the differences between the GENIUS Act and the STABLE Act. House Financial Services Committee Chair French Hill, R-Ark., said the GENIUS Act takes a stricter view of regulations for issuers outside the U.S. seeking to do business within the country. It also lays out a slightly simpler set of steps for issuers seeking oversight from either a state or federal regulator. The STABLE Act contains stricter language surrounding the use of stablecoins for yield-bearing activities.

Still, Hill said the bills are “substantially similar.”