GENIUS Act passes through Senate

The U.S. Senate voted to pass the GENIUS Act, paving the way for a final vote later today. The bill establishes a federal regulatory framework for payment stablecoins. After stalling earlier this month, Republican leadership negotiated key changes that helped secure broad bipartisan backing in a 66–32 vote.

TBA has actively advocated for revisions to strengthen protections for community banks. The updated Senate bill:

• Tightens restrictions on the ability of payment stablecoin issuers to pay interest on stablecoins.
• Clarifies that the bill does not alter eligibility for Federal Reserve master accounts.
• Preserves current custody practices, allowing banks to hold stablecoin reserves under existing rules.
• Restricts issuance by large public or foreign companies not primarily engaged in financial services, unless unanimously approved by the Stablecoin Certification Review Committee.

While this is a meaningful step forward, work remains as the focus now shifts to the House. TBA remains committed to engaging with Congress and the Administration to help shape a strong digital asset regulatory framework—one that promotes American financial leadership while preserving a level playing field for community banks.