In a significant step forward for the digital asset industry, the U.S. Senate passed a stablecoin regulation bill on Tuesday, setting the stage for a potential nationwide framework governing U.S. dollar-pegged cryptocurrencies.
The bill, called the GENIUS Act, passed with bipartisan support in a 68-30 vote, reflecting growing consensus on the need to regulate stablecoins — digital tokens that aim to maintain a fixed value, often tied to the U.S. dollar.
Now, the bill moves to the House of Representatives, which must approve its own version before it heads to President Donald Trump’s desk for final approval.
What the Stablecoin Bill Means
If signed into law, the GENIUS Act would:
- Require stablecoins to be fully backed by liquid assets like U.S. dollars and short-term Treasury bills.
- Mandate monthly public disclosure of reserve holdings by stablecoin issuers.
- Establish federal oversight for an industry that has operated in a legal gray area for years.
“This is a major milestone,” said Andrew Olmem, a former White House economic official. “It creates a regulatory structure for a rapidly growing financial product that plays a vital role in today’s crypto markets.”
Crypto Industry Pushes for Clarity
Stablecoins have become widely used in cryptocurrency trading for moving funds quickly and avoiding the volatility of other tokens. The crypto sector has long urged Congress to pass clear rules that would help bring stability, transparency, and mainstream adoption.
In fact, the crypto industry reportedly spent over $119 million supporting pro-crypto lawmakers in last year’s elections — a sign of how strongly it backed regulatory progress.
Trump’s Influence and Political Debate
President Trump has pushed to reshape U.S. crypto policy, especially after personally investing in the space. His administration has prioritized stablecoin legislation, with some advisors calling for a bill to be passed before August 2025.
However, not everyone is on board.
Critics, including Senator Elizabeth Warren, warned the bill could fuel corruption and national security risks. Others raised concerns that it lacks anti-money laundering safeguards and doesn’t do enough to stop foreign or Big Tech companies from issuing their own stablecoins.
“This bill could turbocharge the stablecoin market while enabling corruption and weakening consumer protections,” Warren said during a Senate debate in May.
What Happens Next?
The bill could face amendments in the House, especially as regulatory bodies like the Conference of State Bank Supervisors (CSBS) push for tighter controls on who can issue and manage stablecoins across state lines.
CSBS President Brandon Milhorn warned that the bill could allow uninsured banks to operate without adequate oversight, calling for “critical changes” to avoid potential financial instability.
Final Thoughts
With stablecoins becoming a cornerstone of crypto transactions, the GENIUS Act could be the first major U.S. law to regulate digital currencies. While there’s still political debate, the Senate’s vote marks a turning point for how crypto is treated under U.S. law — and could shape the future of the industry in the years to come.
