U.S. Senate Passes Stablecoin Legislation, Marking Milestone for Trump and Crypto Industry

The U.S. Senate has approved legislation regulating stablecoins, setting out a framework for dollar-pegged cryptocurrencies—a significant milestone for both the digital asset industry and former President Donald Trump.

On June 17 local time, the Senate passed the GENIUS Act with 68 votes in favor and 30 against. Analysts noted that this vote represents one of the most tangible outcomes for the cryptocurrency sector following substantial financial support aimed at electing a “crypto-friendly” Congress. Major crypto firms that made significant contributions during the last election cycle are reportedly preparing similar initiatives for the 2026 midterms.

Senate Banking Committee Chair and South Carolina Republican Tim Scott stated in a press release that the bill “brings clarity to an industry that has long been enveloped in uncertainty.”
Formally titled the Guiding and Empowering the Nation to Innovate for United States Stablecoins Act (GENIUS), the bill now advances to the House of Representatives. The House will decide whether to adopt the Senate version or proceed with its own STABLE Act, which differs on regulatory mechanisms and the treatment of foreign issuers.

As previously reported by Wall Street Insights, the legislation mandates that U.S. dollar-pegged stablecoins be backed by an equivalent amount of short-term government debt or similar assets and be subject to oversight by either state or federal regulators. It also specifies that these stablecoins will not be covered by federal deposit insurance.

According to media sources, the legislation opens new opportunities across various industries:

Retail and Payments: Supporters believe stablecoins could become a mainstream payment method. Retailers have expressed support, viewing stablecoins as a faster and more cost-efficient alternative to traditional financial products such as credit cards and checks.

Large Banks: While smaller banks have voiced concerns about potential deposit outflows and credit tightening, major financial institutions are exploring the issuance of their own stablecoins, aiming to profit from interest on reserve assets. The stablecoin business is already generating substantial returns, with Tether Holdings SA earning billions from its reserves.

Technology and Non-Financial Corporations: If enacted, the law would allow tech companies and large non-financial firms to issue their own stablecoins, potentially challenging the traditional divide between commerce and finance.

Despite Senate approval, the legislative process is not complete. The House is concurrently pursuing its own regulatory proposals, including broader oversight for the entire crypto sector. Lawmakers must now determine whether to adopt the Senate version outright or reach a compromise through negotiations.

A House Republican aide indicated that both the stablecoin and market structure bills are necessary to establish a comprehensive and lasting framework for digital assets. Work is ongoing to advance both proposals. However, opposition remains. Several Democratic senators, led by Elizabeth Warren, argue the legislation does not provide sufficient consumer or systemic safeguards in the event of an issuer’s collapse. Warren, a senior member of the Senate Banking Committee, said the bill would "enhance the value of Trump’s corruption."

Warnings also came from within the Senate. Thom Tillis, a senior Republican on the Banking Committee from North Carolina, cautioned the House against making changes to the Senate’s version, predicting that Democrats would block any amendments: “If the House sends it back with modifications, it will be dead on arrival.” While the legislative finish line is near, the final stage of this process remains the most challenging.