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The US Senate delivered a historic win for digital currency Tuesday, passing the first-ever federal rules for dollar-backed cryptocurrencies in a 68-30 vote that could transform how people pay for things online.
The GENIUS Act establishes federal oversight for stablecoins — digital tokens pegged to the US dollar — after months of fierce political negotiations. Eighteen Democrats joined Republicans to support the bill, marking the crypto world’s largest legislative win to date.
“To modernize our payment system and to restore our nation’s competitive edge, we must act now,” said Senator Bill Hagerty of Tennessee, the bill’s lead sponsor.
Stablecoin market value hit a record $251.7 billion this week, jumping 22% since January. Circle’s stock has soared roughly 400% since its initial public offering (IPO) earlier this month, reflecting growing investor excitement about regulated digital payments.
The legislation requires stablecoin companies to back their tokens with cash or Treasury bonds. Monthly public reports and regular audits would become mandatory for large issuers.
Major retailers, including Amazon and Walmart, are reportedly exploring the use of stablecoin payments, which could potentially bypass traditional credit card networks. “We’re working with the sector, working individually,” Bank of America CEO Brian Moynihan said last week about potential stablecoin projects.
Deutsche Bank found that stablecoin transactions reached $28 trillion last year, surpassing the combined transactions of Mastercard and Visa.
The bill faced sharp criticism from some Democrats over ethics concerns. “A bill that turbocharges the stablecoin market, while facilitating the president’s corruption… is worse than no bill at all,” said Senator Elizabeth Warren of Massachusetts.
The legislation bans Congress members from profiting from stablecoins but exempts President Trump, who earned at least $57 million from crypto ventures in 2024. Trump’s crypto holdings are worth nearly $1 billion, including tokens in World Liberty Financial.
“Get it to my desk, ASAP — NO DELAYS, NO ADD ONS,” Trump posted on Truth Social Tuesday, urging the House to pass the bill quickly.
The Republican-controlled House must now reconcile differences with its own stablecoin legislation before sending a final version to Trump’s desk. The White House wants the bill signed before Congress’s August recess.
“I feel really good about [this bill],” said Dante Disparte, chief strategy officer at Circle, the largest US stablecoin issuer. “The GENIUS Act will 100% protect financial stability.”
Treasury Secretary Scott Bessent predicts the US stablecoin market could grow to over $2 trillion by 2028. The current global stablecoin value sits around $250 billion.
The legislation represents a dramatic shift from the Biden administration’s crackdown on crypto to Trump’s embrace of digital assets as the future of American finance.
