05.19.25

Senate Republicans Champion Americans’ Financial Freedom by Advancing the GENIUS Act

The Bipartisan GENIUS Act Will Protect Consumers and Bolster National Security

“The GENIUS Act is a critical first step towards delivering on President Trump and the American people’s mandate to advance a regulatory framework for digital assets – and will protect consumers and expand financial inclusion across the country.” – Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-S.C.)

THE GENIUS ACT ENSURES STABLECOINS – WHICH ARE USED BY MILLIONS OF AMERICANS – HAVE CLEAR, PRO-GROWTH REGULATORY STANDARDS

“The GENIUS Act establishes a clear, pro-growth, and secure regulatory framework to modernize our payments system and cement U.S. dollar dominance. I look forward to passing the GENIUS Act in short order to keep digital asset innovation in America, protect customers, and make sure foreign companies are playing by the same rules.” – Sen. Bill Hagerty (R-Tenn.)

  • Under the Biden administration, the U.S. became “one of the world’s strictest crypto regulators,” leading to several crypto companies “weighing the possibility of leaving the country entirely.” (The New York Times: Crypto Firms Start Looking Abroad as U.S. Cracks Down – 6/7/23)
  • Taking a decidedly different approach, “[t]his bipartisan legislation establishes a clear regulatory framework for payment stablecoins,” which “are a type of cryptocurrency whose value is pegged to another asset,” in order to maintain stable pricing. (U.S. Senate Committee on Banking, Housing, and Urban Affairs: Scott Advances Stablecoin, Debanking Legislation Out of Banking Committee – 3/13/25; Coinbase: What is a stablecoin? – accessed 5/19/25)
  • “Stablecoins serve as a critical bridge between the traditional financial system and the cryptocurrency market. They provide a reliable unit of account within the crypto ecosystem, allowing traders and investors to quickly move in and out of positions without converting to fiat currencies.” (Forbes: What Are Stablecoins And How Can One Use Them For Payments? – 10/13/24)
  • “The legislation would create the first-ever U.S. regulatory framework for digital tokens known as stablecoins whose value is pegged to the dollar.” (Politico: Senators ‘working to get back to the table’ on crypto bill, key Dem says – 5/13/25)
  • The amount of monthly stablecoin transactions totaled $718 billion in April, an increase from $476 billion in April 2024. (Visa: Stablecoin Transactions – accessed 5/19/25)
  • “The user base has expanded… with unique stablecoin addresses reaching 35 million, marking a notable increase of approximately 50% year-over-year.” (FinTech Weekly: Banks and Fintech Companies Rush to Issue Stablecoins Amid Regulatory Shift – 3/10/25)
  • As of 2023, 52 million Americans owned cryptocurrency. (Coinbase: State of Crypto – accessed 5/19/25)

THE GENIUS ACT PROTECTS BOTH CONSUMERS AND NATIONAL SECURITY

“Our landmark stablecoin legislation is a huge victory for the digital asset industry and a critical step in securing our nation’s financial future. The GENIUS Act strikes the balance of establishing proper guardrails that protect consumers while preserving financial innovation and America’s dollar dominance in the global financial system.” – Sen. Cynthia Lummis (R-Wyo.)

  • “Under the proposed law, stablecoin issuers must maintain 1:1 reserves, ensuring that US dollars, insured bank deposits, or short-term Treasury bills back each issued token.” (CryptoSlate: Senate Banking Committee passes GENIUS Act with bipartisan support, advancing stablecoin regulation – 3/13/25)
  • Currently, “stablecoins operate in a legal gray area, offering no guaranteed safety for holders,” causing them to be “vulnerable in times of crisis.” (Forbes: The Stablecoin Paradox: Supercharging Dollar Dominance – 3/3/25)
  • To clear up this gray area, the GENIUS Act protects consumers by:
    • “establish[ing] federal safeguards that protect stablecoin holders and enhance consumer confidence in the permitted payment stablecoin market.”
    • “establish[ing] strict marketing standards for payment stablecoins.”
    • “prevent[ing] destabilizing runs through a tailored regulatory framework.”
    • “ensure[ing] state regulators have stablecoin frameworks that are ‘substantially similar’ to the federal framework.” (U.S. Senate Committee on Banking, Housing, and Urban Affairs: FACT SHEET: The GENIUS Act Protects Consumers – 4/16/25)
  • The GENIUS Act will also strengthen national security by: 
    • “build[ing] on the Treasury Department’s and Department of Justice’s existing authorities to address illicit activity involving stablecoins…”
    • “bolster[ing] the global strength of the U.S. dollar, increasing demand for U.S. Treasuries and expanding dollarization in a way that aligns with U.S. sanctions and law enforcement priorities. Without this legislation, firms are incentivized to move offshore, where they face weaker regulatory oversight.” (U.S. Senate on Banking, Housing, and Urban Affairs: FACT SHEET: The GENIUS Act Bolsters National Security – 4/16/25)

THE LEGISLATION IS THE RESULT OF BIPARTISAN NEGOTIATIONS AFTER HAVING PASSED THROUGH A FULL COMMITTEE PROCESS

“[T]his bill is the product of bipartisan consensus-building… The Banking Committee held a three-hour markup during which the committee considered 40 amendments to the bill. That bill was reported out by a vote of 18 to 6, with five Democrats supporting it. But the work didn’t end there. Bill sponsors have been meeting for weeks – including nights and weekends – since the markup to address changes that make this bill better.” – Senate Majority Leader John Thune (R-S.D.)

  • After Senate Democrats tanked a vote to proceed to the GENIUS Act earlier in the month, Republicans stayed at the negotiating table. (Axios: Major crypto bill fails key vote – 5/8/25)
  • “Negotiators worked through the night to land on a final version of the GENIUS Act.” (Punchbowl News’ The Vault: How pro-crypto Democrats will sell the GENIUS Act – 5/15/25)
  • Sen. Lummis “described the recent changes to the GENIUS Act, which would create a regulatory framework for payment stablecoins, as ‘very detail-oriented as opposed to major changes.’” (The Hill: Lummis believes senators have reached deal on stablecoin bill, expects votes next week – 5/15/25)