In a rare show of bipartisanship, the U.S. Senate passes stablecoin legislation, bolstering the crypto industry’s influence in Washington and marking a major policy win for President Donald Trump.
Senate Passes Stablecoin Legislation, Boosting Crypto Regulation and Trump-Linked Ventures
The U.S. Senate has approved long-awaited legislation to regulate stablecoins—cryptocurrencies pegged to the U.S. dollar—signifying a pivotal breakthrough for the digital asset sector and a major policy victory for President Donald Trump.
In a 68-30 bipartisan vote on Tuesday evening, lawmakers passed the bill after years of political deadlock over how to oversee the fast-evolving crypto landscape. Despite bipartisan support, the Senate rejected several Democratic amendments aimed at curbing President Trump’s ability to profit from his extensive crypto-related ventures while in office.
A Trump-affiliated stablecoin already boasts a market valuation of $2 billion, underscoring the president’s personal financial stake in the booming sector.
Regulatory Clarity After Years of Uncertainty
The stablecoin legislation represents the most tangible return yet on the crypto industry’s multibillion-dollar lobbying efforts to influence Capitol Hill. Backers of the bill, including retail and tech companies, argue that stablecoins could modernize payment systems by offering cheaper and faster alternatives to traditional methods such as credit cards and checks.
Under the new rules, dollar-backed stablecoins must maintain one-to-one reserves in secure, short-term government assets or similar regulated financial products. The bill could transform stablecoins from niche assets into a mainstream financial tool.
Senate Banking Committee Chairman Tim Scott, a South Carolina Republican, hailed the move as “bringing clarity to a sector that’s been clouded by uncertainty.” He added that broader crypto market reforms would be reviewed in a Senate hearing scheduled for July.
Business Interests and Banking Concerns
While the legislation received praise from many in the tech and finance sectors, it has also drawn criticism. Smaller banks have expressed fears over a potential exodus of deposits, while larger financial institutions are reportedly exploring launching their own stablecoins to profit from interest on reserve holdings.
Tech firms and major non-financial corporations could also enter the stablecoin market if the bill becomes law, potentially blurring the traditional lines between commerce and finance.
The legislation has sparked fears among some Democrats, led by Senator Elizabeth Warren, who warned that it could leave consumers vulnerable in the event of an issuer’s collapse. “The bill would supercharge the value of Donald Trump’s corruption,” Warren said on Tuesday.
Next Steps: The House and Presidential Approval
The House of Representatives is currently reviewing its own version of the bill, which includes broader crypto regulation. Lawmakers must now decide whether to adopt the Senate’s version or negotiate a compromise.
Senator Bill Hagerty of Tennessee, the Republican lead sponsor, confirmed he had spoken with Trump and hoped to see the legislation reach the president’s desk “in very short order.” He added, “I hope the House will pass the bill as quickly as they possibly can.”
Treasury Secretary Scott Bessent echoed support for the bill, citing its potential to increase global demand for both the U.S. dollar and U.S. debt.
With stablecoins already accounting for a significant share of the $3.3 trillion crypto market, the Senate’s decision marks a watershed moment for the digital finance industry—and for the political influence of its most powerful supporters.
