WASHINGTON – The U.S. Senate on Tuesday approved a bill designed to establish regulatory oversight for stablecoins, a type of cryptocurrency. This legislative action is seen by industry advocates as a crucial first step toward legitimizing digital assets and increasing consumer confidence.
The proposed law, passed with a vote of 68-30, will now be considered by the House of Representatives, where it may undergo further revisions. Its rapid advancement follows a 2024 election cycle in which the cryptocurrency sector emerged as one of the biggest spenders, highlighting its growing presence in the political arena.
Notably, 18 Democratic senators joined the Republican majority (53-47) in supporting the measure. Republican Senators Josh Hawley and Rand Paul were the only members of their party to vote against it.
This is the second significant bipartisan bill to gain traction in the Senate this year, following the Laken Riley Act related to immigration enforcement, which was advanced in January.
Despite its bipartisan support, a faction of Democrats opposed the legislation, citing concerns that it inadequately addresses potential conflicts of interest stemming from President Donald Trump’s personal involvement in the crypto market.
Senator Angela Alsobrooks, a Democrat from Maryland and a co-sponsor of the bill, acknowledged that while the legislation may not encompass everything desired, it represents a “good bipartisan effort.” She emphasized the importance of regulating this previously unregulated sector.
Senator Bill Hagerty, a Republican from Tennessee and the bill’s primary sponsor, argued that the legislation has “far-reaching implications” for the financial system. He believes it is a “paradigm-shifting development” that will modernize the financial landscape.
Senator Hagerty also stated that “With this bill, the United States is a step closer to being a global leader in crypto.”
Officially titled the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act, this law aims to establish clear guidelines and consumer protections for stablecoins. These digital currencies are typically designed to maintain a stable value by being pegged to traditional assets like the U.S. dollar.
While the bill required only a simple majority to pass on Tuesday, it overcame its most significant procedural challenge last week with an identical 68-30 vote, where 18 Democrats voted alongside Republicans. The legislation has faced more resistance than initially anticipated.
Trump’s Crypto Holdings
The approved bill includes a provision preventing members of Congress and their immediate families from profiting from stablecoins. However, this restriction does not extend to the President and his family, despite Trump’s increasing involvement in cryptocurrency ventures.
Last month, President Trump hosted an exclusive dinner at his Virginia golf club for major investors in a meme coin bearing his brand. His family also holds a substantial interest in World Liberty Financial, a crypto initiative that has introduced its own stablecoin, USD1.
According to a recent financial disclosure, Trump declared earnings of $57.35 million from token sales at World Liberty Financial in 2024. A meme coin associated with him is estimated to have generated $320 million in fees, which are distributed among several investors.
The current administration broadly supports the expansion of cryptocurrency and its integration into the economy. Prior to Tuesday’s vote, Treasury Secretary Scott Bessent urged the Senate to approve the bill, projecting that it could help stablecoins “grow into a $3.7 trillion market by the end of the decade.”
Brian Armstrong, CEO of Coinbase, a leading cryptocurrency exchange and strong proponent of the legislation, has met with President Trump and commended his initial steps in the crypto space. This past weekend, Coinbase was among the prominent sponsors of a parade in Washington, D.C., celebrating the Army’s 250th anniversary—an event that coincided with Trump’s 79th birthday.
However, the cryptocurrency industry emphasizes that they see the legislative effort as bipartisan, pointing to key supporters on both sides of the political spectrum.
Senator Tim Scott, Republican of South Carolina and Chair of the Senate Banking Committee, stated before a crucial vote last week, “The GENIUS Act will be the most significant digital assets legislation ever to pass the U.S. Senate. It’s the product of months of bipartisan work.”
Democratic Concerns
The bill experienced a setback in early May when a group of Democratic senators, who had initially supported the bill, reversed their position and voted to impede its progress. This prompted new negotiations involving Senate Republicans, Democrats, and the White House, which ultimately resulted in the compromise version that passed on Tuesday.
Alsobrooks noted that “many, many changes” were made during negotiations and “it’s a much better deal because we were all at the table.”
Prior to Tuesday’s vote, Senator Cynthia Lummis, a Republican from Wyoming and a co-sponsor of the bill, expressed that she is “OK” with the final version of the stablecoin legislation after negotiations.
“I’m not thrilled with it, but it’s OK,” Lummis stated.
Nevertheless, the bill leaves unresolved concerns regarding potential conflicts of interest involving the president, an issue that continues to create tension within the Democratic party.
Following the bill’s passage, Democratic Senator Jeff Merkley released a statement saying, “Passing the GENIUS Act without strong anti-corruption measures stamps a Congressional seal of approval on President Trump selling access to the government for personal profit.”
Senator Elizabeth Warren, a Democrat from Massachusetts and the ranking member of the Senate Banking Committee, has been particularly vocal. She warned that the bill creates a “super highway” for Trump corruption and could allow major technology companies like Amazon and Meta to launch their own stablecoins.
Among the Democrats who supported the bill was first-term Senator Elissa Slotkin, who received $10 million in support from a cryptocurrency-focused political action committee during her Michigan campaign last year. Slotkin acknowledged the bill “wasn’t perfect” but called it a “good-faith, bipartisan start” to regulating stablecoins.
The stablecoin legislation still has several obstacles to overcome before reaching the president’s desk. It must pass the House, where Republicans hold a narrow majority. House lawmakers may attempt to attach a broader market structure bill – a sweeping legislative package – which could make Senate passage more challenging.
President Trump has stated his desire to sign stablecoin legislation before Congress adjourns for its August recess, which is now less than 50 days away.