U.S. Senate Advances Stablecoin Bill as Crypto Regulation Gains Momentum

The U.S. Senate Banking Committee has taken a significant step toward regulating stablecoins, advancing a bill that could set federal standards for issuers. The legislation, known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), passed with an 18-6 vote and now moves to the full Senate for consideration. A similar bill awaits approval in the House of Representatives, but both versions must eventually be reconciled before reaching the president’s desk.

Democratic senators voiced concerns over regulatory gaps, proposing amendments to tighten oversight, but each was rejected along party lines. Senator Elizabeth Warren strongly opposed the bill, citing national security risks and raising alarms over reports that Donald Trump is allegedly linked to a stablecoin venture with Binance-affiliated World Liberty Financial. She argued that pushing the bill forward under such circumstances would be reckless.

Committee Chairman Tim Scott, a Republican from South Carolina, defended the bill’s bipartisan nature, highlighting its potential to establish clear guidelines that protect consumers, encourage competition, and support innovation. Senator Bill Hagerty, the bill’s lead sponsor, emphasized the need for regulatory clarity to foster growth in the stablecoin sector.

With the crypto industry gaining political traction, recent congressional actions—such as efforts to repeal a controversial IRS crypto tax rule—signal growing bipartisan support for digital asset regulation. The shift in legislative momentum follows the 2024 elections, which put Republicans in control of both chambers.

As stablecoins continue to play a crucial role in digital finance, the bill’s progress underscores the increasing urgency to define clear regulations. If passed, the legislation could provide much-needed stability to the industry while shaping the future of U.S. crypto policy.