![](https://worldnewsradar.id/wp-content/uploads/2025/08/BANNER-RENT-300X47-COLUMN-1.png"){kind=small}
In a significant step toward regulating the digital currency space, the U.S. Senate has passed a bill aimed at overseeing stablecoins—a form of cryptocurrency typically tied to the U.S. dollar. The move represents a pivotal moment for the crypto industry, which has been pushing for more regulatory clarity to enhance credibility and consumer confidence. The legislation, which passed with a 68-30 vote, reflects the industry’s growing political clout, especially following a campaign season where crypto-related political spending reached unprecedented levels.
I. Senate Takes First Step Toward Stablecoin Oversight
1. Strong Bipartisan Support with Notable Exceptions
Despite being a Republican-led effort, the bill—dubbed the GENIUS Act—received support from 18 Democratic senators, signaling an unusual bipartisan consensus. The measure passed easily in the Senate and will now proceed to the House, where it may undergo revisions. Two Republicans, Senators Josh Hawley and Rand Paul, opposed the legislation, highlighting a minority faction concerned about the broader implications of federal oversight.
2. GENIUS Act: Establishing Guardrails for Digital Assets
Short for “Guiding and Establishing National Innovation for U.S. Stablecoins,” the GENIUS Act is designed to create a regulatory framework around stablecoins. These digital tokens are generally pegged to fiat currencies and are widely seen as a bridge between traditional finance and cryptocurrency. The act aims to ensure transparency, consumer protection, and legal compliance in a sector previously criticized for its lack of oversight.
II. Political and Economic Implications of the Bill
1. Crypto’s Rising Political Clout
The bill’s rapid advancement comes in the wake of the 2024 election cycle, during which crypto entities emerged as some of the biggest political donors in the United States. This newfound influence has shifted the landscape in Washington, encouraging lawmakers from both sides of the aisle to engage more seriously with digital asset policy.
2. Trump’s Controversial Involvement in the Crypto Industry
While the bill includes provisions banning members of Congress and their families from profiting from stablecoins, it notably excludes the president and their family. This loophole has sparked criticism due to former President Donald Trump’s growing involvement in the crypto space. Trump has been actively promoting projects like World Liberty Financial, a crypto venture his family partly owns. Public disclosures reveal Trump earned over $57 million from token sales last year alone.
III. Mixed Reception from Lawmakers
1. Democratic Concerns Over Transparency and Corruption
Some Democrats remain wary, arguing that the bill fails to address ethical concerns surrounding Trump’s financial interests. Senator Jeff Merkley criticized the bill for potentially enabling Trump to leverage his presidential power for personal gain. Senator Elizabeth Warren echoed these sentiments, warning that the bill could open doors for major corporations like Amazon and Meta to create their own stablecoins with minimal checks.
2. Legislative Compromise After Initial Resistance
The bill faced resistance in May when several Democrats reversed their previous support. This setback led to intense negotiations involving both parties and the White House. The resulting compromise version ultimately gained enough bipartisan traction to pass. Senator Angela Alsobrooks, a Democratic co-sponsor, described the final version as the result of “many, many changes” made during the talks.
3. Support from Crypto-Friendly Lawmakers
Not all Democrats opposed the measure. Freshman Senator Elissa Slotkin, who received substantial backing from a crypto PAC during her election campaign, backed the bill while acknowledging its imperfections. On the Republican side, Senator Cynthia Lummis, a prominent crypto advocate, accepted the revised version, describing it as “OK” despite initial reservations.
IV. A Push Toward Mainstream Crypto Integration
1. Treasury and Industry Backing
Support for the legislation extended beyond Capitol Hill. Treasury Secretary Scott Bessent publicly encouraged its passage, suggesting that it could help stablecoins evolve into a $3.7 trillion industry by decade’s end. Coinbase CEO Brian Armstrong has also been a vocal supporter, reinforcing the crypto industry’s stake in shaping future regulations.
2. Broader Market Structure Reforms Still Pending
Although the GENIUS Act is a milestone, it may be only the beginning. Some lawmakers in the House are considering tying the bill to broader reforms of the financial markets, potentially complicating its passage. These additions could involve comprehensive regulation of digital assets, affecting not only stablecoins but also cryptocurrencies like Bitcoin and Ethereum.
V. The Road Ahead for the GENIUS Act
1. House Challenges and Potential Delays
The bill now faces scrutiny in the House of Representatives, where Republicans hold a narrow majority. Lawmakers may attempt to merge the GENIUS Act with a broader financial overhaul bill, a move that could stall its progress. The success of this legislation will largely depend on the ability of both chambers to find common ground without reopening contentious debates.
2. Trump’s Timeline for Enactment
Former President Trump, who remains a central figure in the discussion, has called for the bill to be finalized before Congress adjourns for its August recess. With less than two months remaining, the clock is ticking. Whether or not lawmakers can meet this deadline remains uncertain, especially if new amendments are introduced in the House.
Conclusion
The Senate’s passage of the GENIUS Act marks a defining moment in the regulation of stablecoins and the broader crypto industry. While the bill provides much-needed clarity and a regulatory foundation for stablecoins, it also reveals the complex interplay between politics, finance, and emerging technologies. The measure represents a rare bipartisan achievement, but concerns about transparency, potential conflicts of interest, and the role of major tech firms suggest that the conversation is far from over. As the bill heads to the House and possibly the president’s desk, the future of crypto regulation in the United States hangs in the balance.
