U.S. Senate Advances Landmark Senate Crypto Bill Focused on Stablecoins

In a major move to regulate the crypto sector, the U.S. Senate on Monday advanced a bipartisan Senate crypto bill designed to establish the country’s first federal framework for stablecoins. This stablecoin bill marks a critical step toward clearer rules in the fast-growing digital asset space.

Senate Advances First Major Stablecoin Bill

Known as the GENIUS Act, the Senate crypto bill passed a key procedural vote with a 66-32 majority. Sixteen Democrats joined most Republicans in supporting the bill, which had stalled just two weeks earlier after facing unified opposition from Senate Democrats.

The updated stablecoin bill includes several key safeguards like stricter consumer protections, limits on stablecoin issuance by tech companies, and temporary ethics rules targeting high-profile tech entrepreneurs, like Elon Musk and investor David Sacks, both active in crypto.

Stablecoin Boom Drives Senate Crypto Bill Forward

Stablecoins have become a central pillar of the digital asset economy. In the U.S., adoption surged with active wallets increasing 53% to over 30 million between February 2024 and 2025

Total stablecoin supply rose to $225 billion, while monthly transaction volumes more than doubled, peaking at $5.1 trillion in December.

Despite this growth, U.S. laws have lagged behind, raising concerns about consumer protection, financial stability, and potential misuse for illicit activities

The GENIUS Act, the key Senate crypto bill, aims to close these gaps by regulating stablecoin issuers, ensuring reserve backing, and setting compliance standards.

The stablecoin bill still requires final Senate approval before moving to the House of Representatives. If passed, it would represent the first comprehensive federal framework for stablecoins, bringing much-needed oversight and legitimacy to the U.S. crypto market.

Why Some Democrats Oppose the Senate Crypto Bill

Not all lawmakers support the bill. A few weeks ago, Senate Democrats unanimously blocked the GENIUS Act, joined by two Republicans, citing concerns over insufficient national security, anti-money laundering, and oversight provisions in the Senate crypto bill.

Democratic concerns also extend to Donald Trump’s personal crypto activities, including his promotion of a meme coin bearing his name and reported ties to World Liberty Financial, a crypto investment firm

Reports that he hosted a private dinner for the coin’s top holders have raised red flags about the mixing of political influence and unregulated digital assets.

Why This Matters

The U.S. is moving closer to regulating stablecoins with this bipartisan Senate crypto bill, aligning with frameworks already adopted by the EU and Singapore. This shift promises increased market oversight, stability, and regulatory clarity in the expanding digital asset sector.

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