The U.S. Senate is expected to approve a landmark bill on Tuesday that would regulate stablecoins—a type of cryptocurrency pegged to the value of traditional assets like the U.S. dollar.
If passed, it would mark the first major crypto legislation from Congress, setting the stage for a broader regulatory framework aimed at legitimizing the industry and enhancing consumer protections.
Bill arrives as pressure mounts to regulate fast-growing digital asset market
The legislation arrives at a critical time, as lawmakers face increasing pressure to rein in the rapidly growing digital asset market.
Stablecoins have been under scrutiny due to concerns about transparency, reserve backing, and potential risks to the broader financial system. The bill is designed to bring stability, clarity, and oversight to this crucial sector.
The move also reflects the crypto industry’s rising political influence. In the 2024 election cycle, crypto-related groups emerged as some of the top political donors, spending heavily to shape public policy and regulatory outcomes.
Following Senate approval, the bill will head to the House of Representatives, where it may undergo further revisions before becoming law.
Industry leaders view the legislation as a critical step toward mainstream acceptance, signaling that Washington is finally taking concrete steps to regulate digital assets and foster innovation in a safer, more transparent environment.
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18 Democrats join GOP in backing stablecoin bill in closely split Senate
Eighteen Democratic senators have backed the stablecoin legislation, joining the Republican majority in the closely divided 53-47 Senate.
If approved, it would mark the second major bipartisan bill to advance through the Senate in 2025, following the Laken Riley Act on immigration earlier this year.
Despite this cross-party support, most Democrats remain opposed to the bill. Critics argue that the legislation fails to adequately address concerns over former President Donald Trump’s financial ties to the crypto industry. They warn that the measure could benefit Trump-aligned crypto interests without imposing strong enough safeguards.
The divide highlights ongoing tensions in Washington over how to regulate digital assets while balancing innovation, financial transparency, and political accountability.
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GENIUS Act aims to regulate stablecoins with clear rules and consumer protections
The GENIUS Act—short for “Guiding and Establishing National Innovation for U.S. Stablecoins”—aims to regulate stablecoins by setting clear guardrails and consumer protections.
Stablecoins are digital assets typically pegged to the U.S. dollar and widely used for trading and payments in the crypto ecosystem.
The bill is expected to pass in the Senate on Tuesday, as it only requires a simple majority and already cleared a key procedural hurdle last week with a 68-30 vote.
However, despite early bipartisan support, the legislation has faced more resistance than anticipated, particularly over concerns about oversight, financial risk, and political entanglements.
Still, its passage would mark a significant step toward formal U.S. regulation of the digital asset space.
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