Senate Passes Landmark Stablecoin Bill with Bipartisan Support
In a significant development for the digital asset sector, the U.S. Senate on Tuesday approved legislation establishing a regulatory framework for U.S. dollar-pegged cryptocurrency tokens, known as stablecoins. The bill, titled the GENIUS Act, passed with a 68-30 bipartisan vote, marking a pivotal moment for the industry.
The House of Representatives—currently controlled by Republicans—must now pass its own version before the legislation can move to President Donald Trump’s desk for final approval.
“It is a major milestone,” said Andrew Olmem, managing partner at Mayer Brown and former deputy director of the National Economic Council under Trump. “It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.”
Stablecoins, designed to hold a steady value—typically pegged 1:1 to the U.S. dollar—are widely used by crypto traders to transfer value between tokens. Their popularity has surged in recent years, with advocates highlighting their potential for enabling instant payments.
If enacted into law, the legislation would require stablecoins to be backed by liquid assets, such as U.S. dollars or short-term Treasury bills. Issuers would also be obligated to disclose the makeup of their reserves monthly, a move aimed at increasing transparency and investor confidence.
The crypto industry has lobbied aggressively for clear digital asset regulations, arguing that a formal framework could broaden the use of stablecoins in mainstream finance. Industry players collectively spent more than $119 million in last year’s elections to support pro-crypto candidates, promoting the issue as a bipartisan cause.
Although the House passed a stablecoin bill last year, it stalled in the Senate, where Democrats then held the majority.
President Trump, who has made overhauling crypto policy a central part of his agenda, pushed for momentum on digital asset legislation after receiving major backing from the sector during his campaign. Bo Hines, head of Trump’s Council of Advisers on Digital Assets, has stated the administration’s goal is to get a stablecoin bill passed before August.
Still, tensions in Congress over Trump’s involvement in various crypto ventures nearly derailed legislative progress. Some Democrats voiced frustration over the president and his family’s promotion of personal crypto projects.
“In advancing these bills, lawmakers forfeited their opportunity to confront Trump’s crypto grift – the largest, most flagrant corruption in presidential history,” said Bartlett Naylor, a financial policy advocate with Public Citizen, a consumer rights group.
Among Trump’s crypto ventures are a meme coin, $TRUMP, launched earlier this year, and World Liberty Financial, a crypto firm partially owned by the president. The White House maintains there are no conflicts of interest, stating Trump’s assets are managed through a trust overseen by his children.
Senator Elizabeth Warren, a vocal critic of the bill, warned that the legislation could open the door for big tech firms to issue private stablecoins, and said it lacked sufficient protections against money laundering and foreign actors.
“A bill that turbocharges the stablecoin market, while facilitating the president’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all,” Warren said on the Senate floor in May.
The bill is expected to face further revisions in the House. In response to the Senate vote, the Conference of State Bank Supervisors (CSBS) called for major changes to the proposal, citing concerns over its potential impact on financial stability.
“CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors,” said Brandon Milhorn, CSBS President and CEO.
