Stablecoin's First Regulatory Framework Just Got a Bipartisan Boost in Washington

The legislation is now ready for a final Senate vote in what may be one of the first major regulations set to govern the use and issuance of stablecoins.  

The bill initially received strong support from both Republicans and Democrats. However, controversy emerged after it was revealed that President Trump’s personal investments in crypto, especially his own $TRUMP memecoin, could raise conflicts of interest.  

Protective provisions 

Despite initial resistance from Senate Democrats, a group of bipartisan lawmakers huddled for several days to include provisions that would: 

• boost consumer-protection safeguards;
• limit tech companies’ ability to issue stablecoins; and
• extend ethics standards to certain government officials, including special government employees like Elon Musk.  

“Blockchain technology is here to stay” 

In a statement, Senator Mark Warner (D-VA) wrote that:  

“Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight… But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay. If American lawmakers don’t shape it, others will.”  

Regulatory framework 

The popularity of the crypto industry has prompted a renewed push in Washington to provide a regulatory framework that facilitates growth in a sustainable and ethical manner. While the bipartisan cooperation on the GENIUS Act has been encouraging, the bill may be subject to further amendments in the House of Representatives.