US Senate Speeds Up Digital Asset Regulation
Senate Banking Committee advances landmark bills as Washington pivots to pro-crypto stance
The Senate Banking Committee has fast-tracked two crypto bills, marking the most significant regulatory transformation.
Senator Tim Scott's committee has given the green light to:
The GENIUS Act: Establishes federal rules requiring stablecoins to be fully backed by liquid assets and prohibits issuers from lending (passed with an 18-6 vote)
The FIRM Act: Targets federal regulators who pressure banks to deny services to legitimate crypto businesses
Both bills are now heading to the Senate floor, with Scott predicting a comprehensive crypto market bill will be signed into law by August 2025.
"We must innovate before we regulate—allowing innovation in the digital asset space to happen here at home is critical to American economic dominance across the globe," Scott told Fox News Digital.
Approximately 70-80 Democratic representatives now support clear digital asset regulations, according to Representative Ro Khanna at the March Digital Assets Summit in New York.
Bitcoin's stability amid recent market turbulence might be one reason. Despite Trump's controversial tariff announcements sending markets into a tailspin earlier this month, Bitcoin has stabilised around $84,000, up 1.2% in 24 hours as of yesterday.
The legislative push comes after what crypto advocates call "regulatory suffocation" under the previous administration.
"I wanted within the first hundred days to have some crypto or digital asset legislation marked up and run through our committee. Good news is the GENIUS Act is stamped. Done. Heading to the Senate floor." — Senator Tim Scott
Treasury Secretary Scott Bessent and newly appointed crypto czar David Sacks have made digital asset competitiveness a cornerstone of the administration's economic strategy.
Not everyone is on board with this development.
Senator Elizabeth Warren has criticised the GENIUS Act for "failing to protect consumers" and potentially "empowering Big Tech firms to issue their own currencies."
With Republicans holding just a three-seat majority in the Senate, the path to final legislation remains fraught with potential roadblocks.
For investors, regulatory clarity could be the catalyst that drives the next bull run.
Stablecoin providers stand to benefit first—clear rules mean reduced legal risks and potentially broader adoption. But exchanges, custodians, and token issuers would also see windfall advantages from a comprehensive market bill.
The global implications can't be overstated. As the EU progresses with MiCA regulations, the US is racing to avoid being left behind in the global crypto regulatory competition.
Will clear regulations keep innovation stateside, or simply drive compliance costs so high that only established players survive?