US Senate passes stablecoin bill in major milestone for crypto industry
The Senate on Tuesday passed a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens known as stablecoins, in a watershed moment for the digital asset industry.The bill, dubbed the GENIUS Act, received bipartisan support, with several Democrats joining most Republicans to back the proposed federal rules.The House of Representatives, which is controlled by Republicans, needs to pass its version of the bill before it heads to President Trump’s desk for approval.“It is a major milestone,” said Andrew Olmem, a managing partner at law firm Mayer Brown and the former deputy director of the National Economic Council during Trump’s first term.
“It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.”Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens.Their use has grown rapidly in recent years, and proponents say that they could be used to send payments instantly.If signed into law, the stablecoin bill would require tokens to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose the composition of their reserves on a monthly basis.The crypto industry has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins to become more widely used.
The sector spent more than $119 million backing pro-crypto congressional candidates in last year’s elections and had tried to paint the issue as bipartisan.The House passed a stablecoin bill last year but the Senate – in which Democrats held the majority at the time – did not take that bill up, and it died.Trump has sought to broadly overhaul US cryptocurrency policies after courting cash from the industry during his presidential campaign.Bo Hines, who leads Tr...