Senate Advances Bipartisan Stablecoin Bill Amid Criticism

The U.S. Senate Banking Committee has advanced the GENIUS Act, which aims to establish the first federal regulations for stablecoins, a growing $228 billion market. While the bill received bipartisan support, critics, including Massachusetts Senator Elizabeth Warren, argue it could facilitate corporate overreach by allowing major firms like Walmart and Meta to enter the banking sector without adequate safeguards, potentially increasing illicit financial activities. Supporters, including the bill's sponsor, Senator Bill Hagerty, argue that it enhances regulatory clarity and competitiveness in the digital asset space. Warren attempted to introduce amendments to bolster national security measures, but they were largely rejected. The legislation is set for a full Senate vote soon, amidst concerns that it may not adequately protect consumers and national security from potential abuses. The debate reflects broader tensions in Congress regarding the regulation of digital assets, with significant implications for the stability of financial markets.