Senate Set to Pass GENIUS Act Regulating Stablecoins

The Senate is poised to pass legislation on Tuesday that will regulate stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. This bill, known as the GENIUS Act, stands for “Guiding and Establishing National Innovation for U.S. Stablecoins,” and is expected to be the first in a series of crypto-related legislation from Congress. The industry hopes that this legislation will enhance its legitimacy and reassure consumers.

The bill has garnered support from 18 Democratic senators, aligning with the Republican majority in the 53-47 Senate. If passed, it will be the second major bipartisan bill to advance through the Senate this year, following the Laken Riley Act on immigration enforcement in January. However, most Democrats oppose the bill, citing concerns that it does not adequately address President Donald Trump’s personal financial interests in the crypto space.

Sen. Angela Alsobrooks, D-Md., acknowledged the bipartisan effort but noted that not all desired provisions were included. She emphasized that the bill will regulate an area that has previously been unregulated. The legislation includes guardrails and consumer protections for stablecoins and bans members of Congress and their families from profiting off stablecoins. However, this prohibition does not extend to the president and his family, despite Trump’s growing involvement in the crypto space.

Trump recently hosted a private dinner at his golf club with top investors in a Trump-branded meme coin. His family holds a significant stake in World Liberty Financial, a crypto project that has launched its own stablecoin, USD1. The administration supports the growth and integration of crypto into the economy, with Treasury Secretary Scott Bessent stating that the legislation could help push the U.S. stablecoin market beyond $2 trillion by the end of 2028.

Brian Armstrong, CEO of Coinbase, the nation’s largest crypto exchange and a major advocate for the bill, has met with Trump and praised his early moves on crypto. Coinbase was among the brands that sponsored a parade in Washington commemorating the Army’s 250th anniversary, an event that coincided with Trump’s 79th birthday. The crypto industry views the legislative effort as bipartisan, with champions on each side of the aisle.

Senate Banking Committee Chair Tim Scott, R-S.C., described the GENIUS Act as the most significant digital assets legislation ever to pass the U.S. Senate, highlighting months of bipartisan work. However, the bill faced a setback in early May when a bloc of Senate Democrats who had previously supported it reversed course and voted to block its advancement. This prompted new negotiations involving Senate Republicans, Democrats, and the White House, resulting in a compromise version expected to win passage on Tuesday.

Despite the progress, the bill leaves unresolved concerns over presidential conflicts of interest, an issue that remains a source of tension within the Democratic caucus. Sen. Elizabeth Warren, D-Mass., has been vocal about her concerns, warning that the bill creates a “super highway” for Trump corruption and could allow major technology companies to launch their own stablecoins.

If the stablecoin legislation passes the Senate on Tuesday, it still faces several hurdles before reaching the president’s desk. It must clear the narrowly held Republican majority in the House, where lawmakers may try to attach a broader market structure bill, making passage through the Senate more difficult. Trump has expressed his desire to have stablecoin legislation on his desk before Congress breaks for its August recess, which is now just under 50 days away.