US senate passes stablecoin bill

On Tuesday, the U.S. Senate passed a bill to set rules for stablecoins—cryptocurrencies that are tied to the U.S. dollar. This is seen as a big step for the digital asset industry. The bill, called the GENIUS Act, gained support from both political parties, with most Republicans and some Democrats voting in favor. It passed with a 68-30 vote. Now, the House of Representatives must pass its version before it can go to President Donald Trump to be signed into law.

“It is a major milestone,” said Andrew Olmem, a lawyer at Mayer Brown and a former economic official during Trump’s first term.
“It establishes, for the first time, a regulatory regime for stablecoins, a rapidly developing financial product and industry.”

Stablecoins are a type of crypto that tries to keep a stable value, usually matching the dollar. Many crypto users use them to transfer funds between different digital tokens. Their use has increased in recent years, and supporters believe they can help send money faster.

If approved, the new law would require stablecoins to be supported by cash or short-term U.S. government bonds. Issuers would also need to show their reserves every month.

The crypto industry has long asked for clear rules, saying this would help stablecoins become more widely accepted. Last year, the sector spent over $119 million to support pro-crypto politicians and encouraged bipartisan support.

Trump wants to reshape U.S. crypto rules. His adviser, Bo Hines, said the White House wants a stablecoin law before August.

Some Democrats, however, are worried about Trump’s personal crypto ventures and about the bill’s lack of controls. Senator Elizabeth Warren warned the bill could hurt financial stability and security.

The bill may still change in the House, with some banking groups calling for more limits.