Scott Advances Stablecoin, Debanking Legislation Out of Banking Committee
Both the GENIUS Act and FIRM Act now head to the Senate floor.
Washington, D.C. – In its first legislative markup of the 119th Congress, the U.S. Senate Committee on Banking, Housing, and Urban Affairs voted to advance the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This bipartisan legislation establishes a clear regulatory framework for payment stablecoins. In his remarks, Chairman Tim Scott (R-S.C.) emphasized that this is a bipartisan leap forward to protect consumers and national security and ensure the industry can grow and innovate here in the United States.
Chairman Scott’s Financial Integrity and Regulation Management (FIRM) Act, which will eliminate all references to reputational risk as a measure to determine the safety and soundness of regulated financial institutions, also passed out of the committee. The bill is the first step towards ending the practice of debanking and has support from a wide range of stakeholders.
Chairman Scott’s opening remarks as delivered at the beginning of the legislative markup:
When I became Chairman of this Committee, I promised that we would return to regular order. Now for those of you unfamiliar with regular order, as I am, it’s been like…years since we’ve actually had a markup in this committee. So, it is ridiculous in one way, and frankly remarkable in another way, that we are returning to regular order – which is one of the priorities I committed to when I became Chairman.
Today’s historic markup of the GENIUS Act and the FIRM Act is proof that we are in fact delivering on our promises.
The digital asset community – and, more importantly, the American consumers – deserve clarity.
For far too long, the absence of a regulatory framework has left consumers vulnerable and businesses in the dark. This uncertainty has also stifled innovation here at home in America.
That changes today.
The GENIUS Act is a bipartisan step forward in ensuring stablecoins are safe and reliable tools in the financial system.
The GENIUS Act establishes common-sense rules that require stablecoin issuers to maintain reserves backed 1:1, comply with anti-money laundering laws, and ultimately protect American consumers while promoting the U.S. dollar’s strength in the global economy.
This is about keeping innovation and opportunity on American soil rather than driving it overseas. We are also taking an action today to end the weaponization of financial regulators.
The FIRM Act will eliminate the ability of regulators to use reputational risk as a justification to debank legal operating businesses and individuals.
No federal agency should have the power to cut off access to our financial services industry simply because they disapprove of a customer’s politics, business, or industry.
That is simply un-American. This bill ensures that banks make decisions based on financial risk – not political preference.
While the FIRM Act is the first step, there are other bills – really good bills – that address debanking, including Senator Cramer’s Fair Access to Banking Act. As a committee, we will commit to working on this issue and figuring out the best way to solve it long-term.
With today’s markup, we are advancing serious, bipartisan solutions.
I look forward to working with my colleagues to get these bills to the Senate floor and, ultimately, President Trump’s desk.
Finally, I want to take a second to thank both Senators Hagerty and Lummis for working together on such important work as the GENIUS Act. And I’d like to thank your staffs as well.
This has been a very, very important process and the success that we’ve had comes from a bipartisan coalition that includes Senator Alsobrooks as a co-sponsor of the legislation – working together not as Republicans or Democrats – but working together as Americans protecting innovation in the greatest nation on the planet.
And if we are going to have economic supremacy in the world, it requires for us to encourage, frankly, innovation before we stifle it with too much oppressive regulation.
###
Previous Article