BREAKING: US senate passes stablecoin bill in major crypto breakthrough

In a landmark move, the U.S. Senate on Tuesday, June 17, 2025, passed a sweeping bill to regulate stablecoins — digital currencies pegged to the U.S. dollar — sending ripples through the global crypto industry.

Dubbed the GENIUS Act, the bipartisan bill creates the first federal framework for stablecoin issuance and oversight.

The House of Representatives is expected to take up the legislation in the coming weeks. If passed, it will head to President Donald Trump for final approval.

The bill mandates that all stablecoins be backed 1:1 by liquid assets such as cash and U.S. Treasury bills.

It also requires monthly public disclosures of reserve holdings by issuers — a measure aimed at boosting transparency and investor confidence.

“This marks a defining moment in the evolution of digital finance,” said Andrew Olmem, a former White House economic adviser.

The bill’s passage follows a year-long lobbying effort by crypto firms, who reportedly spent over $119 million backing pro-crypto candidates in last year’s midterm elections.

Advocates argue the legislation provides legal clarity needed to unlock broader use of digital currencies in payments and commerce.

The House passed a similar bill in 2024, but the then Democrat-led Senate stalled its progress. With Republicans now in control — and Trump openly embracing crypto — the GENIUS Act found renewed momentum.

Trump has made cryptocurrency policy a centerpiece of his second term, including the launch of his meme coin $TRUMP and a stake in World Liberty Financial, a private crypto firm.

Critics say this creates ethical risks, but the White House insists Trump’s holdings are managed in a blind trust.

Still, opposition remains. Senator Elizabeth Warren slammed the bill, warning that it lacks anti-money laundering safeguards and may allow Big Tech and foreign firms to launch their own stablecoins unchecked.

“This bill invites corruption, undermines consumer protections, and could destabilize our financial system,” Warren told colleagues.

Despite concerns, industry experts say the GENIUS Act offers the regulatory clarity long missing from the crypto landscape.

As the House prepares to debate the bill, all eyes are on whether lawmakers can strike a balance between innovation and oversight.

If signed into law, the U.S. could become the first major economy to fully regulate stablecoin assets — potentially setting the global standard.

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