U.S. Senate Approves Stablecoin Regulation Bill, Marking a Major Step for Crypto Industry

In a significant development for the cryptocurrency sector, the U.S. Senate on Tuesday passed legislation establishing a federal framework for stablecoins — digital currencies pegged to the U.S. dollar. The legislation, known as the GENIUS Act, passed with bipartisan backing by a vote of 68 to 30.

The bill mandates that stablecoins be backed by highly liquid assets, such as U.S. dollars and short-term Treasury securities, and requires issuers to publicly report the makeup of their reserves on a monthly basis. Its aim is to bring transparency and stability to a rapidly evolving segment of the financial system.

For the legislation to become law, it must still pass the House of Representatives — currently led by Republicans — before being sent to President Donald Trump for final approval. The House had passed a similar bill last year, but it was stalled in the then-Democrat-controlled Senate.

Andrew Olmem, a former deputy director of the National Economic Council under Trump and now a partner at Mayer Brown, described the bill’s passage as a “major milestone,” noting that it marks the first time the U.S. would implement a formal regulatory structure for stablecoins.

Stablecoins, designed to maintain a steady value, are commonly used by crypto investors to move between different digital assets. Their popularity has surged, and proponents believe they could revolutionize real-time payments.

The crypto industry has long called for regulatory clarity, arguing that it would enable broader adoption of stablecoins and other digital assets. In support of these efforts, the sector poured over $119 million into last year’s election cycle to help elect lawmakers supportive of digital asset legislation.

President Trump, who has made crypto policy a central part of his administration’s financial agenda, has pushed for progress on stablecoin regulation. Bo Hines, head of Trump’s Council of Advisers on Digital Assets, has indicated that the White House aims to finalize the bill before August.

Despite bipartisan momentum, the bill has also sparked controversy. Some Democrats expressed concern that the legislation does not adequately address the risks posed by private stablecoins from tech giants or by foreign issuers. Others, including Senator Elizabeth Warren, criticized the measure for lacking strong safeguards against money laundering and for enabling what she called the president’s “crypto corruption.”

Warren voiced strong opposition on the Senate floor last month, warning that the bill could erode consumer protections, financial stability, and national security. “A bill that turbocharges the stablecoin market, while facilitating the president’s corruption… is worse than no bill at all,” she said.

Public Citizen, a consumer advocacy organization, also condemned the move, accusing lawmakers of ignoring ethical concerns surrounding Trump’s involvement in cryptocurrency projects. Trump’s crypto ventures include a meme coin called $TRUMP and a blockchain business, World Liberty Financial, partly owned by the president.

The White House has responded by stating that Trump has no conflicts of interest, as his financial holdings are in a trust managed by his children.

The Conference of State Bank Supervisors (CSBS) also raised red flags. In a public statement, CSBS President Brandon Milhorn urged lawmakers to make “critical changes” to the bill, warning it could allow uninsured banks to engage in money transmission and custody operations across state lines without adequate state oversight.

As the legislation heads to the House for consideration, it may undergo further revisions to address concerns from regulators and lawmakers alike.