If passed, the bill will establish the first regulatory regime for Stablecoins, a fast-growing financial product.
At a moment in the digital asset industry basin, the US Senate passed a bill that would create a regulatory framework for US affiliate cryptocurrency tokens known as Stablecoins.
The bill, called the Genius Act, received bipartisan support on Tuesday, with several Democrats joining most Republicans in support of proposed federal rules. Passed 68-30. The House, controlled by Republicans, must pass a version of the bill before heading to President Donald Trump’s desk for approval.
Stablecoins are a kind of cryptocurrency designed to maintain a constant value. It is usually a 1:1 dollar peg, commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and supporters say they can be used to send payments instantly.
If signed into law, Stablecoin Bill requires it to be backed by liquid assets such as US dollars and short-term Treasury bills, and requires the issuer to publish the composition of its monthly reserves.
“This is a big milestone,” said Andrew Olmem, managing partner at the law firm Meyer Brown and former deputy director of the National Economic Council during Trump’s first term.
“For the first time, we are establishing a regulatory system for Stubcoin, a rapidly developing financial products and industry.”
The crypto industry has long pushed lawmakers to pass laws that create rules for digital assets, claiming that a clear framework could make stubcoin more widely available. The sector has tried to portray the issue as a bipartisan, supporting congressional candidates who have supported more than $119 million in last year’s election.
The House passed the Stubcoin bill last year, but died after the Senate, where Democrats held a majority at the time.
Conflict of interest
Trump sought to rethink US cryptocurrency policy widely after sought cash from the industry during the presidential election.
Beau Hines, who heads the Advisory Council on Trump’s Digital Assets, said the White House would like to pass a ridiculous bill before August.
Capitol Hill’s tensions over Trump’s various crypto ventures at one point have threatened to derail this year’s digital assets sector legislative hopes as Democrats are increasingly unhappy with Trump and his family promoting personal crypto projects.
“In moving forward with these bills, lawmakers confiscated an opportunity to stand up to Trump’s cryptoglyft, the biggest and most prominent corruption in presidential history,” said Bartlett Naylor, a public citizen monetary policy advocate for consumer rights advocacy group.
Trump’s Crypto Ventures includes Meme Coin, called $Trump, which was launched in January, and a crypto company that he partially owned, called World Liberty Financial.
The White House says there is no conflict of interest that exists in Trump, and his assets lie in the trust his children manage.
Other Democrats expressed concern that the bill would not prevent large tech companies from issuing their own private, silly things, and argued that the law requires stronger anti-money laundering protections and bans against foreign, silly issues.
“A bill that turbocharges the stubcoin market while promoting presidential corruption and undermines national security, financial stability and consumer protection is worse than having no bills at all,” Senator Elizabeth Warren, a Democrat, said in a May statement.
The bill could face further changes in the House.
In a statement, the state bank’s supervisor meeting called for “significant changes” to mitigate the risks of financial stability.
“CSBS remains interested in the dramatic and unsupported expansion of uninsured bank authority to carry out money transmission or custody activities nationwide without the approval or supervision of host country supervisors,” President and CEO Brandon Millhorn said in a statement.
