{"id":17143,"date":"2025-03-11T08:18:55","date_gmt":"2025-03-11T08:18:55","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17143"},"modified":"2025-03-11T08:18:55","modified_gmt":"2025-03-11T08:18:55","slug":"senate-stablecoin-bill-gets-key-updates-ahead-of-13-march-vote","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17143","title":{"rendered":"Senate Stablecoin Bill Gets Key Updates Ahead of 13 March Vote"},"content":{"rendered":"
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The US Senate Banking Committee <\/span>is set<\/span> to vote on the Guiding and Establishing National Innovation for US Stablecoin (GENIUS) Act <\/span>on March 13<\/span>, following key updates made after consultations with Democratic lawmakers. <\/span><\/p>\n

The Republican-led bill<\/a>, <\/span>originally<\/span> introduced in February by Senator Bill Hagerty, aims to establish a regulatory framework for stablecoins in the US.<\/span><\/p>\n

Hagerty, one of the <\/span>bill\u2019s<\/span> co-sponsors, announced on March 10 that the latest version incorporates bipartisan input and strengthens provisions related to consumer protections, authorized stablecoin issuers, risk mitigation, state-level pathways, insolvency measures, and transparency.<\/span><\/p>\n

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Bipartisan Support Grows for Revised Stablecoin Bill Ahead of Senate Vote<\/span><\/h2>\n

The revised bill <\/span>is backed<\/span> by Republican Senators Cynthia Lummis and Tim Scott<\/span>, as well as<\/span> Democratic Senators Kirsten Gillibrand and Angela Alsobrooks.<\/span><\/p>\n

The bill seeks to bring U.S. dollar stablecoin issuers with market capitalizations exceeding $10 billion\u2014currently Tether (USDT) and <\/span>Circle\u2019s<\/span> USD Coin (USDC)\u2014under Federal Reserve oversight. Smaller issuers would have the option to comply with state-level regulations instead.<\/span><\/p>\n

The updated provisions in the GENIUS Act could create a competitive edge for U.S.-based stablecoin issuers over foreign competitors. <\/span><\/p>\n

According to Dom Kwok, co-founder of Web3 learning app EasyA, the bill imposes stricter standards on non-U.S. stablecoin issuers in areas such as reserve and liquidity requirements, money laundering prevention, and sanctions compliance.<\/span><\/p>\n

\u201cM<\/span>ost foreign issuers will find these standards hard to meet,<\/span>\u201d <\/span>Kwok stated in an X post, adding that the bill could provide an upper hand to <\/span>Circle\u2019s<\/span> USDC and Ripple <\/span>Labs\u2019<\/span> Ripple USD (RLUSD).<\/span><\/p>\n

https:\/\/twitter.com\/dom_kwok\/status\/1899263834558468383<\/p>\n

Legal expert Jeremy Hogan, a partner at Hogan & Hogan, echoed this sentiment, arguing that the anti-money laundering and reserve requirements <\/span>in the bill<\/span> appear to favor U.S.-based stablecoin issuers.<\/span><\/p>\n

The GENIUS Act still faces several hurdles before becoming law. If the Senate Banking Committee approves it, the bill will proceed to a full Senate vote, <\/span>where it<\/span> could <\/span>be debated<\/span> further. <\/span><\/p>\n

If it passes the Senate,<\/span> it will move to the House of Representatives.<\/span> Should the House approve the bill without changes, <\/span>it would then be sent<\/span> to President Donald Trump for either signing into law or vetoing.<\/span><\/p>\n

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MiCA\u2019s<\/span> Stablecoin Regime Comes <\/span>In<\/span> Effect<\/span><\/h2>\n

The European <\/span>Union\u2019s<\/span> Markets in Crypto-Assets (MiCA) regulatory framework related to stablecoins took\u00a0<\/span>effect in June last year.<\/span><\/a><\/p>\n

Under the new rules, companies must stop issuing non-euro-denominated stablecoins used as a<\/span> \u201c<\/span>means of exchange<\/span>\u201d <\/span>if they cross a threshold of more than 1 million transactions or a value of over 200 million euros (US$215.2 million) per day.<\/span><\/p>\n

Furthermore, stablecoin issuer Circle recently said <\/span>that <\/span>it\u2019s<\/span> now registered as an electronic money institution, or EMI, in France. <\/span>This<\/span> grants the firm a key license to become a compliant stablecoin issuer under the <\/span>EU\u2019s<\/span> new crypto laws.<\/span><\/p>\n

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Key Takeaways<\/h3>\n