Sen. Bill Hagerty (R-Tenn.) leaves a meeting with tech CEOs at the U.S. Capitol in Washington, June 18, 2024. The Senate on Tuesday, June 17, 2025, passed legislation to establish a regulatory framework for stablecoins, putting the cryptocurrency industry, which had long been viewed with suspicion by lawmakers in Washington, on the brink of a major policy breakthrough. (FILE PHOTO Eric Lee/The New York Times)
The Senate on Tuesday passed legislation to establish a regulatory framework for stablecoins, putting the cryptocurrency industry, which had long been viewed with suspicion by lawmakers in Washington, on the brink of a major policy breakthrough.
Bipartisan approval of the bill, known as the GENIUS Act, followed an aggressive lobbying campaign aimed at transforming the cryptocurrency industry’s image from scandal-plagued experiment to legitimate financial sector.
Senate passage came over the fierce objections of many Democrats, who warned that the measure lacked strict-enough regulations or oversight to prevent abuses, including anti-corruption rules that would bar President Donald Trump and his family from continuing to profit from cryptocurrency.
The bill still must be passed by the House and signed by the president. But the 68-30 vote in the Senate marked the first time the chamber has approved major cryptocurrency legislation. It represented a significant step toward giving the industry what it has long sought from Washington: the credibility that comes with federal oversight.
Avoiding Wild Fluctuations
Stablecoins, a type of digital currency tied to the value of the U.S. dollar, are often seen as comparatively reliable types of cryptocurrency. These cryptocurrencies are designed to avoid the wild fluctuations in value of some popular coins like bitcoin, making them something of a bridge to the world of traditional currency. Major companies globally have launched, or are considering launching, their own stablecoins.
Sen. Bill Hagerty, R-Tenn., the bill’s lead sponsor, said the legislation would be a significant step toward breaking down the barriers between traditional financial markets and decentralized markets. He said it would help bring the country’s financial system into the modern era.
“To modernize our payment system and to restore our nation’s competitive edge, we must act now,” he said ahead of the vote on the Senate floor.
The legislation’s success reflects the dramatic shift that has taken place in Washington as Republicans have consolidated a governing trifecta.
While the Biden administration cracked down on digital assets, Trump has pulled back sharply on such regulations, signaling a more permissive stance that aligns with the cryptocurrency industry’s goals.
That has coincided with Trump’s family’s rapid expansion into the industry, which has made the president into a crypto dealer who stands to make huge sums of money from it.
c.2025 The New York Times Company. This article originally appeared in The New York Times.
