Senate passes crypto regulations, sends to House without addressing Trump’s investments

By: D. D. Reese

In a significant step toward regulating digital currency, the U.S. Senate on Tuesday passed the GENIUS Act, legislation aimed at establishing oversight for stablecoins, a type of cryptocurrency tied to the U.S. dollar. The bill passed 68–30 with support from both parties, marking a rare bipartisan moment in Congress and signaling growing acceptance of cryptocurrency within the U.S. financial framework.

The legislation, officially named the Guiding and Establishing National Innovation for U.S. Stablecoins Act, aims to introduce federal guardrails around stablecoin issuance and use. Proponents argue the bill brings much-needed regulatory clarity to an industry that has seen explosive growth and significant volatility in recent years.

“This is an unregulated area that will now be regulated,” said Sen. Angela Alsobrooks (D-Md.), a co-sponsor of the bill. She acknowledged that the final version of the legislation reflected compromises but praised the bipartisan collaboration that brought it to passage.

Sen. Bill Hagerty (R-Tenn.), who introduced the bill, called it a “paradigm-shifting development” that will modernize financial systems and potentially position the U.S. as a global leader in digital finance.

Stablecoins are cryptocurrencies designed to maintain a stable value by pegging themselves to assets like the U.S. dollar. Their reliability and ease of transaction have made them a key feature in the expanding digital asset economy. Supporters of the bill say clear rules will help consumers and businesses feel more secure when using these tokens and could prevent future crises related to unregulated digital assets.

The GENIUS Act was the second major bipartisan bill to pass the Senate this year, following the Laken Riley Act on immigration enforcement. Eighteen Senate Democrats crossed the aisle to support the stablecoin legislation, joining the Republican majority. Two Republicans, Sens. Josh Hawley and Rand Paul, voted against the measure.

The bill does, however, stop short of addressing concerns raised by some lawmakers regarding President Donald Trump’s personal and financial involvement in cryptocurrency ventures. While the GENIUS Act includes a clause barring member of Congress and their families from profiting off stablecoins, it does not extend that restriction to the president or their family.

That omission has drawn criticism from some Democratic lawmakers, who cite Trump’s ties to World Liberty Financial, a cryptocurrency project that includes its own stablecoin, USD1. Trump reportedly earned over $57 million from token sales through that venture in 2024, according to public financial disclosures.

“This creates a troubling conflict of interest,” said Sen. Jeff Merkley (D-Ore.), who opposed the bill. “We should not be moving forward without strong anti-corruption measures in place.”

Others, like Sen. Elizabeth Warren (D-Mass.), voiced concerns that the legislation could pave the way for large technology firms like Amazon or Meta to issue their own digital currencies, potentially concentrating too much financial power in the hands of tech giants.

Still, first-term Sen. Elissa Slotkin (D-Mich.), who received significant campaign support from crypto-related political action committees, called the bill “a good-faith, bipartisan start” despite its imperfections.

The crypto industry has welcomed the legislation, hailing it as a landmark moment that could establish legitimacy and foster growth in the sector. Brian Armstrong, CEO of Coinbase, has publicly supported the bill and met with Trump in recent weeks. Treasury Secretary Scott Bessent also endorsed the measure, projecting the stablecoin market could grow into a $3.7 trillion sector by decade’s end.

The GENIUS Act now heads to the House, where further changes could be made. Some lawmakers have expressed interest in attaching broader digital market reforms, a move that could complicate its chances of returning to the Senate for final approval.

President Trump has indicated he wants the bill on his desk before the August congressional recess. With fewer than 50 days remaining, legislative negotiators face a tight timeline and complex policy hurdles.

While the GENIUS Act may offer the crypto industry greater credibility and the American public more security in the digital financial space, it also raises questions about governance, influence, and the boundaries between private investment and public policy. As the debate continues, the bill represents both a milestone and a new chapter in how the U.S. will approach digital currency in the years ahead.