Crypto Scores First Major Legislative Win as US Senate Approves Stablecoin Bill

The passage of the legislation also paves the way for private companies to begin issuing their own digital dollars. The bill will now go to the House of Representatives – the lower chamber of the US Congress – where lawmakers have already begun working on their own stablecoin regulations. 

Although Republicans control the House, reconciling the two bills may take time. Both chambers must approve the bill in the same form, Congressional insiders told CNBC. Nonetheless, House Republicans have largely followed President Trump’s full embrace of crypto. 

Significant Moment 

For the crypto industry, this legislation provides a regulatory framework that formally establishes its legitimacy. Clearly delineated responsibilities within the federal bureaucracy could open the door for greater institutional investment and broader consumer adoption. The GENIUS Act, if successful, has the potential to begin the integration of stablecoins, and the opportunities they offer, into the financial system of a nation with a $30 trillion GDP (gross domestic product). 

• Proponents argue clear stablecoin regulation will modernize payment systems by allowing instant settlements, while maintaining the dollar’s dominance in the global financial system. 

• Opponents argue that it empowers big tech and retail companies to issue their own private currencies without sufficient consumer protection or regulatory oversight. 

Should the House pass this legislation, it will mark Washington’s strongest endorsement of digital assets to date, setting the course to determine crypto’s place in the future of American finance. 

Nitty-Gritty  

The GENIUS Act received strong bipartisan support in a 68-30 vote that saw unity between Senate Democrats and Republicans. However, its final passage proved challenging. Success involved lengthy negotiations between Senators on the bill’s language. 
 
A strong bloc of Democrats, led by Senator Elizabeth Warren (D-MA), continues to oppose the bill in its current form. In their view, the legislation fails to provide adequate consumer protection safeguards and lacks strong oversight mechanisms to prevent corruption.  

In a statement on X, Senator Warren wrote, “If Congress doesn’t fix the GENIUS Act, billionaires like Elon Musk and Jeff Bezos could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors. Then they’ll come begging for a bailout when it inevitably blows up.”