WASHINGTON, D.C. — The U.S. Senate on Tuesday passed a bill to regulate stablecoins, in a landmark move that could reshape the cryptocurrency industry. The legislation, titled the GENIUS Act, cleared the chamber with a 68–30 vote. The bill requires all U.S.-dollar-linked stablecoins to be backed by liquid assets and mandates monthly public disclosures of reserves.
The measure received support from both major parties, with most Republicans and a group of Democrats voting in favor. The House of Representatives, which is under Republican control, must now pass its version of the bill before it can be signed into law by President Donald Trump.
“This bill marks a major milestone,” said Andrew Olmem, who previously advised on national economic policy. “It puts in place the first federal rules to oversee stablecoins, which are becoming a core part of modern finance.”
Stablecoins are digital tokens that aim to maintain a 1:1 value with the U.S. dollar, and are often used by traders to quickly move funds between cryptocurrencies. Their use has grown sharply over the past three years, raising questions about market risk, transparency, and national security.
The GENIUS Act sets new standards for these tokens. Under the bill, stablecoin issuers must hold liquid assets such as cash or short-term U.S. Treasury securities. Issuers will also be required to publish monthly reports on reserve holdings. The bill does not apply to non-dollar-backed or algorithmic stablecoins.
The crypto sector has spent heavily to push for regulation. In 2024, the industry spent over $119 million supporting congressional candidates who backed crypto-friendly policies. The GENIUS Act is widely seen as the most concrete result of those lobbying efforts to date.
The House previously passed a stablecoin bill in 2024, but the Senate did not act on it at the time. Trump has made digital asset policy a key issue in his second presidential campaign. His administration is pressing Congress to pass a stablecoin law by August.
Bo Hines, who leads Trump’s Council of Advisers on Digital Assets, confirmed that the White House wants stablecoin rules finalized this summer.
But the bill is not without critics.
Democratic Senator Elizabeth Warren raised strong objections, warning it could allow big tech firms and foreign actors to flood the U.S. market with unregulated digital currency.
“This bill supercharges the stablecoin market while opening the door to corruption and risks to national security,” Warren said during a floor speech last month.
Consumer watchdog groups have echoed those concerns. Bartlett Naylor, a financial policy expert, criticized lawmakers for advancing the bill without fully examining the president’s own involvement in the crypto space.
“In passing this bill, Congress has chosen to ignore Trump’s crypto dealings, which represent one of the most blatant conflicts of interest in U.S. political history,” Naylor said.
Trump’s crypto ventures include the launch of a token called $TRUMP and a stake in World Liberty Financial, a cryptocurrency business. The White House has said the president’s assets are held in a trust managed by his children, and denied any legal or ethical violations.
State regulators have also raised red flags. The Conference of State Bank Supervisors released a statement on Tuesday urging lawmakers to revise parts of the bill that they say give too much power to non-insured entities operating across state lines.
“The bill risks undermining financial stability by allowing certain institutions to operate without proper state oversight,” said Brandon Milhorn, the group’s president.
The House could introduce changes before voting. The bill’s fate will determine how and when the U.S. moves to regulate a financial technology that continues to expand with limited guardrails.
If the House approves the bill, it will be the first comprehensive federal law governing any aspect of the cryptocurrency industry.