Tim Scott Hails Passage of 'Groundbreaking' GENIUS Act for Crypto Markets
Senate approves groundbreaking cryptocurrency regulation; banking leader hails it as a significant milestone
Banking Committee Chair Tim Scott beamed to Fox News Digital that the GENIUS Act is a monumental triumph, marking a milestone in financial markets after its successful Senate passage.
In a historical turn of events, the Senate endorsed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act this week, overcoming numerous obstacles that arose along the legislative path. One of the bill's staunchest supporters is Senate Banking Committee Chair and ex-presidential hopeful Tim Scott, who steered the bill through his committee with Democratic backing. In an exclusive chat with Fox News Digital, Scott described the GENIUS Act as unparalleled following the bill's Senate win.
"We're standing on the precipice of a groundbreaking achievement," Scott articulated. "This isn't merely about democracy or political parties. It's about providing a chance for single mothers like the one who raised me, to anticipate a decrease in costs from this burgeoning digital economy."
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A bipartisan endeavor, introduced by Senator Bill Hagerty, R-Tenn., the bill encountered hurdles en route to the Senate floor, as Democrats had previously blocked the bill in early May. At the time, Senate Majority Leader John Thune, R-S.D., hypothesized whether the delay stemmed from Democrats intending to deny Republicans or President Trump a bipartisan win.
The bill's centerpiece is a regulatory structure for payment stablecoins, which showcases Congress's increasing attention to the crypto sector.
U.S. Treasury Secretary Scott Bessent lauded the legislation on Tuesday, aligning the Trump administration's stance in support of the crypto industry.
WASHINGTON, D.C. - MARCH 07: U.S. Secretary of Treasury Scott Bessent and U.S. President Donald Trump observe The White House Digital Assets Summit in the State Dining Room of the White House on March 07, 2025 in Washington, D.C. (Anna Moneymaker/Getty Images / Getty Images)
"Recent reports project a stablecoin market worth $3.7 trillion by the end of the decade," Bessent shared on X. "This likelihood becomes more probable with the GENIUS Act's passage."
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The legislation now advances to the House, and, assuming it passes the lower chamber, it would land on the president's desk. According to Senator Tim Scott, Fox News Digital's interviewee, he's buoyed by optimism that the GENIUS Act may be endorsed by August.
"We've accomplished the most crucial part of our task in the Senate, let the party commence across the country," Scott told Fox News Digital. "Now, the House must grapple with the process. I anticipate we'll witness the president's signature on legislation by August."
The number of individuals worldwide possessing a minimum of $1 million in cryptocurrencies has surged.
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Industry leaders also rallied behind the bill, as Solana Policy Institute President, and previous Blockchain Association head, Kristin Smith told Fox News Digital that the legislation taps into "tremendous potential."
"This GENIUS ACT will establish clear guidelines for stablecoins, unlocking massive potential for more efficient payments and financial services," Smith clarified. "We applaud the Senators and their staff who have championed this critical infrastructure and look forward to rapid action in the House to cross the finish line."
The timetable for a House vote remains uncertain, but Senator Scott, along with the Trump administration's eagerness to enact the GENIUS Act, is predicted to influence the process.
Enrichment Insights:
The GENIUS Act has significant weight because it creates the first comprehensive federal regulatory structure in the United States for controlling payment stablecoins, marking a crucial and groundbreaking step in crypto policy and digital asset oversight[1][3][5]. The bill's key components and regulatory prowess can be summarized as follows:
Key Regulatory Components:
- The Act mandates stablecoin issuers to maintain a 1:1 reserve in high-quality liquid assets securing their stablecoins, which is intended to shield consumers from risks such as redemption failure during mass redemptions[1][2].
- It introduces a dual licensing system, combining federal oversight with flexible state-level regulations, establishing clearer regulatory barriers for stablecoin operations[1].
- The Act requires independent audits and imposes restrictions on algorithmic stablecoins in order to promote stability and lessen systemic risks within the crypto ecosystem[1].
- The Act enforces robust anti-money laundering (AML) and sanctions compliance under the Bank Secrecy Act (BSA), with the goal of curbing illicit uses of stablecoins while recognizing that the vast majority of stablecoin transactions are legitimate[1].
- The bill prioritizes repayment to coin holders during issuer insolvency, providing additional consumer protection[2].
Potential Impact on the Crypto Industry:
- By offering clarity, confidence, and a sound framework, the GENIUS Act is expected to stimulate broader adoption of stablecoins and spur industry growth in the U.S.[1].
- Congressional backing and the bill's commitment to overseeing digital assets may serve as a benchmark, potentially influencing global regulatory strategies regarding stablecoins and crypto assets more broadly[1].
- The legislation's increased regulatory certainty could encourage institutional investors and mainstream financial institutions to engage more intensively with stablecoins and related crypto advancements.
- The Act supports public-private collaboration in combating financial crimes involving stablecoins, exemplified by partnerships such as the T3 Financial Crime Unit, which have already resulted in significant criminal asset seizures[1].
- Once implemented by federal regulators, the GENIUS Act will establish licensing requirements, compliance frameworks, and enforcement protocols, leading to a more stable and honest environment for digital payments and crypto innovation[1][4].
In summary, the GENIUS Act symbolizes a crucial regulatory milestone addressing consumer protection, financial stability, and compliance within the stablecoin sector, establishing a more reliable and trustworthy environment for digital payments and crypto innovation[1][2].
- Tim Scott, banking committee chair, noted the GENIUS Act's passage as a monumental achievement in financial markets, particularly for those in the burgeoning digital economy.
- The GENIUS Act creates a federal regulatory structure for payment stablecoins, showcasing Congress's increasing attention to the crypto sector and aligning with the Trump administration's stance in support of the crypto industry.
- The GENIUS Act's progress now moves to the House, with optimism from Senator Tim Scott that the legislation may be endorsed by August.
- Industry leaders, such as the Solana Policy Institute's President, have applauded the GENIUS Act for tapping into "tremendous potential," unlocking massive potential for more efficient payments and financial services.
