In a major win for the cryptocurrency industry, the U.S. Senate has passed a new bill that would set up a federal regulatory system for stablecoins—digital currencies tied to the value of the U.S. dollar. The bill, known as the GENIUS Act, passed with strong bipartisan support in a 68-30 vote on Tuesday, marking the first time the Senate has approved major crypto legislation.
This move is seen as a turning point for crypto companies that have long pushed for legitimacy in the eyes of lawmakers and regulators. Stablecoins are a type of cryptocurrency designed to be more stable than volatile coins like Bitcoin, and are increasingly seen as a bridge between traditional finance and digital assets.
Senator Bill Hagerty, a Republican from Tennessee and the bill’s main sponsor, said the legislation would help modernize the U.S. payment system and keep the country competitive in the growing global digital economy. “If we want to maintain the dollar’s leadership and bring our financial system into the future, we must act now,” Hagerty said on the Senate floor.
The bill’s passage comes after months of intense lobbying by crypto firms and political groups. Over \$130 million was spent by crypto-backed super PACs during the 2024 election cycle to support candidates in both parties who favor digital asset innovation. Those efforts paid off, with crypto-friendly lawmakers gaining ground in both the Senate and the House.
However, not everyone is celebrating. Many Democrats raised concerns that the bill doesn’t include enough consumer protections or anti-corruption rules. Some pushed for language that would prevent public officials—including former President Donald Trump and his family—from profiting from stablecoin ventures. But Republican leaders blocked those amendments, narrowing the bill’s scope.
Still, 18 Democrats joined Republicans in supporting the bill, while just two Republicans voted against it. Critics like Senator Elizabeth Warren said the legislation reminded her of the deregulatory approach that contributed to the 2008 financial crisis. “This bill gives the industry the appearance of regulation without real accountability,” she warned.
Other lawmakers, such as Senator Kirsten Gillibrand of New York and Senator Ruben Gallego of Arizona, supported the measure despite concerns. They noted that the final version includes some consumer protections and allows the FDIC to oversee parts of the stablecoin market.
The GENIUS Act would give stablecoin issuers a clear path to operate legally in the U.S., which crypto executives say is essential for growing the industry. John Wu, president of Ava Labs, called the bill “a foundation for legitimizing stablecoins and embedding them into the global financial system.”
The legislation could also boost demand for U.S. Treasury securities and help preserve the dollar’s dominance in global finance. With more companies like Circle—whose stock recently surged after going public—entering the space, lawmakers believe the new rules will give both investors and institutions more confidence.
Despite disagreements over Trump’s personal involvement in crypto, most lawmakers agree that regulation is needed. Senator Ben Ray Luján, a Democrat from New Mexico, said, “People already have money in stablecoins. We can’t afford to let this space go unregulated.”
While some wanted stronger rules to keep Big Tech companies out of the stablecoin market, the bill instead sets up a regulatory board to review applications. Senator Josh Hawley criticized this, calling it too weak, while Senator Rand Paul argued the bill was too strict and could hurt innovation.
The bill now heads to the House of Representatives. If it passes there and is signed by the president, it will officially become law—marking a major step in shaping the future of cryptocurrency in America.
