On Tuesday local time, the U.S. Senate passed a bill to establish a regulatory framework for cryptocurrency tokens pegged to the U.S. dollar (i.e., stablecoins); this is a significant milestone for the Cryptocurrency Industry.
On June 18, Financial Associated Press reported (Editor Bian Chun) that on Tuesday local time, the U.S. Senate passed a bill to establish a regulatory framework for cryptocurrency tokens pegged to the U.S. dollar (i.e., stablecoins). This is a significant milestone for the Cryptocurrency Industry.
The bill, known as the "Guidance and Establishment of a National Innovation for U.S. Stablecoins Act" (GENIUS Act), received bipartisan support, with several Democrats joining the majority of Republicans in supporting the proposed federal regulation. The bill passed with a result of 68 votes in favor and 30 votes against.
This marks the first time significant cryptocurrency legislation has been passed in the Senate.
The bill will be submitted to the U.S. House of Representatives for consideration. If the House passes the bill, it will be sent to President Trump for signing; the bill can only officially take effect after being signed by the president.
Senate Banking Committee Chairman Tim Scott stated in a news release: "By passing the GENIUS Act, we clarify the rules for an industry that has long been shrouded in uncertainty and demonstrate that a leadership style that upholds bipartisan cooperation and principles can still deliver tangible results for the American people."
House Financial Services Committee Chairman French Hill also welcomed the Senate's passage of the GENIUS Act on Tuesday. He stated that this brings lawmakers "one step closer to establishing an effective regulatory framework."
Andrew Olmem, managing partner of the law firm Mayer Brown and former Deputy Director of the National Economic Council during Trump's first term, remarked, "This is an important milestone. It establishes a regulatory framework for stablecoins (a rapidly developing financial product and Industry) for the first time."
However, some Democrats oppose the bill, warning that it lacks sufficiently strict regulatory provisions and oversight mechanisms to prevent abuse. They regret the absence of provisions to prevent President Trump from benefiting from stablecoins, which has become a key issue as the Trump family continues to expand its Cryptos portfolio.
However, the White House argues that there is no conflict of interest between Trump and the bill, as his Assets are managed by his children.
Stablecoins are a type of Cryptos designed to maintain a constant value, usually pegged to the dollar at a 1:1 ratio, used by Cryptos traders to transfer funds between tokens. In recent years, the use of stablecoins has grown rapidly, with supporters claiming they can be used for instant payments.
If signed into law, the stablecoin bill would require that tokens be backed by liquid Assets (such as dollars and short-term Treasury bills) and would require issuers to publicly disclose their reserve composition every month.
The Cryptos Industry has long been advocating for lawmakers to enact legislation to establish rules for digital Assets, believing that a clear framework could lead to broader use of stablecoins.
The House passed a stablecoin bill last year, but it was not passed by the Democratic-majority Senate at that time. Therefore, the passage of the GENIUS Act in the Senate is seen by some as a model of bipartisan cooperation.
Trump received strong support from the Cryptos Industry during his presidential campaign and has been trying to comprehensively reform the U.S. Cryptos policy since taking office. Bo Hines, head of the Trump Digital Assets Advisory Committee, previously stated that the White House hoped to pass a stablecoin bill before August.
