The U.S. Senate is poised to pass the GENIUS Act, a landmark bill aimed at regulating stablecoins—a type of cryptocurrency tied to the U.S. dollar. This would mark Congress’s first major step toward crypto regulation, signaling broader legislation to come.
The initiative follows a 2024 election season where the crypto industry was one of the top political donors, highlighting its growing sway in Washington. With bipartisan support from 18 Democrats joining a Republican majority, the bill is expected to pass easily with a simple majority vote.
Democratic Concerns Clash With Industry Optimism Over Trump’s Crypto Ties and Influence
Despite some bipartisan momentum, the legislation has exposed sharp divisions among Democrats. Many oppose the bill due to its perceived failure to address former President Donald Trump’s financial interests in the crypto sector. A provision banning members of Congress from profiting off stablecoins notably excludes the president and their family.
Critics, like Sen. Elizabeth Warren, warn that this creates opportunities for corruption, especially given Trump’s growing involvement in the industry through ventures like World Liberty Financial and the USD1 stablecoin.
Senate Advances GENIUS Act to Regulate Stablecoins, Stirring Crypto Clout and Trump Ethics FearsThe crypto industry has largely welcomed the GENIUS Act, seeing it as a step toward legitimacy and long-term growth. Treasury Secretary Scott Bessent expressed optimism that the bill could help push the U.S. stablecoin market past $2 trillion by 2028.
Coinbase CEO Brian Armstrong has played a visible role in lobbying for the legislation, appearing alongside Trump and promoting the industry’s bipartisan goals. Industry figures view the act as a foundational framework for integrating digital assets into the broader financial system.
Bipartisan Compromises Push Bill Forward, But House Vote and Deadlines Add Pressure
The path to Senate approval hasn’t been smooth. In May, some Democratic senators initially withdrew support, stalling the bill. However, renewed negotiations involving both parties and the White House led to a compromise version now favored for passage. Lawmakers like Sen.
Angela Alsobrooks praised the bipartisan cooperation, noting that while not perfect, the bill provides much-needed regulatory oversight for an unregulated sector. Nonetheless, lingering concerns about executive-level conflicts of interest remain unresolved.
Once passed in the Senate, the bill must navigate the House, where Republicans hold a narrow majority. Lawmakers may attempt to attach broader crypto reforms, potentially complicating its final passage.
Trump has publicly stated he wants the legislation on his desk before the August recess, setting a tight deadline for lawmakers. Whether the GENIUS Act becomes law will depend not only on continued bipartisan compromise but also on how Congress handles the broader debate around digital assets and financial transparency.
