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There has just been an announcement, which has the potential to reshape the entire crypto industry. According to the latest updates, the U.S. Senate has just passed the Genius Act, which is the first major legislation that is aiming to regulate stablecoins. Stablecoins are cryptocurrencies that are pegged to fiat currencies like the U.S. dollar. This bill passed with a 68-30 vote, showing how bipartisan momentum has shifted and how Washington’s crypto industry is gaining influence day by day. Even though the bill will still face hurdles in the House, it’s still a huge advancement that is seen as a key milestone by crypto enthusiasts that are seeking greater legitimacy and regulatory clarity.

Stablecoin Regulations Gain Momentum in Washington

The bill passed is called the Genius Act, which is short for Guiding and Establishing National Innovation for Us Stable Coins. The main idea behind it is to establish basic consumer protections and legal frameworks for issuing and managing stablecoins. To succeed in this and create a safer environment for everyday crypto users, lawmakers are focusing on transparency and accountability. If signed into law, the legislation would be the first of its kind in the United States. Because of this, it would probably encourage further innovation in the crypto industry.

Supporters are saying that the bill will help the U.S. lead in the rapidly expanding and growing crypto market. Since analysts have projected that the market would reach $3.7 trillion by the end of the decade, the bill comes at a topical time. Treasury Secretary Scott Bessent called the bill a “critical foundation” for future growth. Additionally, he suggested that stablecoins could become a key component of the American financial system.

Since the industry and interest toward the industry are actively growing, even more traders are turning to best crypto margin trading platforms to maximize their potential returns and profits. This bill and the whole idea of regulating stablecoins are seen as steps towards making such platforms safer and more accessible to mainstream traders.

Democrats Divided as Trump’s Crypto Ties Stir Debate

While the bill passed with significant Republican support, its progress has revealed deep fractures within the Democratic Party. Currently there are eighteen Democratic senators crossing party lines to vote in favor, while others are talking about concerns over the lack of anti-corruption provisions, especially regarding President Trump’s crypto dealings.

Democratic Senators Elizabeth Warren and Jeff Merkley were particularly outspoken. Warren warned that the bill could open a “superhighway” for corporate and political abuse. Merkley, on the other hand, criticized the legislation for failing to include restrictions on presidential profits from crypto platforms.

Almost all of the critics are pointing towards Trump’s well-documented involvement in the crypto industry. Especially Trump-branded memecoin and his family’s ties to World Liberty Financial, the company that launched the USD1 stablecoin, are constantly brought up during debates. It’s not a surprise, since Trump’s first public financial disclosure report shows that he made over $57 million from token sales through the company last year alone.

Crypto Influence and House Negotiations Take Center Stage

The bill’s passage also highlights the crypto industry’s growing power. During the 2024 election cycle, crypto groups played a critical role, since they were among the top political spenders in the U.S. A great example is Senator Elissa Slotkin, who received $10 million in support from a crypto PAC during her Michigan race. After this kind of support, it’s not a surprise that Slotkin was one of the Democrats backing the bill despite some reservations.

Even though the Senate cleared the legislation, it doesn’t mean that the battle is over yet. It still faces a contentious path in the House of Representatives. During this time, the Republican majority may seek to propose broader market structure reforms to the stablecoin bill. This would derail or delay the bill’s progress if it gets sent back to the Senate.

President Trump has urged lawmakers to send the bill to his desk before the August recess. This adds pressure on House Republicans. It’s not clear yet whether the deadline can be achieved or not.

Ethics and Anti-Corruption Remain Sticking Points

Currently, one of the bill’s most controversial omissions is its failure to apply anti-profiteering rules to the presidency. While the Genius Act bars members of Congress and their families from profiting directly from stablecoin projects, there is no such rule that applies to the White House.

This has raised concerns and accusations stating that the bill essentially works in Trump’s personal financial interest. 

Senator Angela Alsobrooks, who is a Democrat from Maryland and one of the bill’s co-sponsors, acknowledged the shortcoming. She said that “We weren’t able to include everything we wanted, but this is a good bipartisan start.” This statement was used and is still used by many lawmakers who see the bill as a necessary foundation, which is imperfect but essential.

Conclusion

It’s clear now that the Senate’s passage of the Genius Act marks a milestone for crypto regulation in the U.S., at least for stablecoins. The bill offers legitimacy, but it also has a few flaws that are raising concerns about ethics, corruption, and political influence. Right now, it’s hard to say anything about the bill’s future. Right now, it’s headed to the House, which is why the coming weeks will determine whether bipartisan victory becomes a milestone or just another flashpoint of America’s complex relationship with digital assets.