Bipartisan bill brings first federal regulation to stablecoins, signaling a new era in digital finance under Trump’s pro-crypto agenda
The U.S. Congress has passed historic legislation regulating stablecoins, marking a turning point for the crypto industry. Backed by President Trump, the bill promises legitimacy and growth for dollar-backed digital assets.
The cryptocurrency industry notched a major political and regulatory victory on Thursday as Congress passed the first-ever federal legislation to govern stablecoins—digital tokens pegged to the U.S. dollar. With strong bipartisan support in the House and prior Senate approval, the bill is now headed to President Donald Trump, who has championed the initiative and personally lobbied Republican lawmakers to back it.
Stablecoins Step Into the Spotlight
The new law brings formal oversight to the $265 billion stablecoin market, long seen as a crucial bridge between traditional finance and digital assets. Under the legislation, issuers of dollar-backed stablecoins will be required to maintain one-to-one reserves in short-term government debt or similar instruments. They must also operate under the supervision of either state or federal regulators.
“This legislation provides the stablecoin industry with the degree of legitimacy they have been craving,” said Eswar Prasad, senior fellow at the Brookings Institution. “And the bonus is that it comes with what I view as relatively light-touch regulation.”
Trump’s Crypto Week Delivers Key Win
The stablecoin bill forms the cornerstone of what President Trump has branded “Crypto Week” — a legislative push to modernize U.S. financial infrastructure around blockchain and digital tokens. Earlier the same day, the House passed another measure focused on broader crypto market structure, which still awaits Senate consideration.
The bill’s passage marks a dramatic comeback for an industry that was rocked by the collapse of Sam Bankman-Fried’s FTX less than three years ago. Since then, crypto firms have invested heavily in lobbying efforts and campaign donations, emerging as a powerful force in shaping the future of financial regulation.
Banking Industry on Alert
Traditional financial institutions are already taking notice. During earnings calls this week, JPMorgan CEO Jamie Dimon, Bank of America’s Brian Moynihan, and Citigroup’s Jane Fraser all acknowledged the disruptive potential of digital dollar tokens. Analysts warn that the widespread adoption of stablecoins could lead to a shift in bank deposits and upend conventional payment systems.
Several major banks, including JPMorgan, have recently signaled interest in entering the stablecoin space themselves, amid expectations of increasing adoption for cross-border transfers and digital payments.
Political Tensions Over Trump Ties
Despite the bill’s broad support, the path to passage was not without controversy. Critics, particularly from the Democratic side, raised concerns over the potential for conflicts of interest, pointing to Trump’s personal and family connections to digital asset ventures—including World Liberty Financial, which issues both a branded token and its own stablecoin.
The Bloomberg Billionaires Index estimates that Trump’s crypto-linked businesses have added over $620 million to his personal wealth in recent months. Attempts by Democrats to include a provision banning elected officials and their families from participating in stablecoin enterprises were ultimately unsuccessful.
A New Chapter in U.S. Crypto Regulation
With the passage of the stablecoin bill, the crypto industry is now on the cusp of entering the mainstream financial system under a defined legal framework. As the market eyes explosive growth—projected to reach $3.7 trillion by 2030—supporters argue the new law provides a foundation for innovation, consumer confidence, and global competitiveness. While debate continues over conflicts of interest and regulatory scope, Thursday’s vote marks an undeniable turning point for the future of digital money in the United States.
