WASHINGTON (AP) \u2014 The Senate is expected to approve legislation Tuesday that would regulate a form of cryptocurrency known as stablecoins, the first of what is expected to be a wave of crypto legislation from Congress that the industry hopes will bolster its legitimacy and reassure consumers.<\/p>\n
The fast-moving legislation, which will be sent to the House for potential revisions, comes on the heels of a 2024 campaign cycle where the crypto industry ranked among the top political spenders in the country, underscoring its growing influence in Washington and beyond. <\/p>\n
Eighteen Democratic senators have shown support for the legislation as it has advanced, siding with the Republican majority in the 53-47 Senate. If passed, it would become the second major bipartisan bill to advance through the Senate this year, following the Laken Riley Act on immigration enforcement in January. <\/p>\n
Still, most Democrats oppose the bill. They have raised concerns that the measure does little to address President Donald Trump\u2019s personal financial interests in the crypto space. <\/p>\n
\u201cWe weren\u2019t able to include certainly everything we would have wanted, but it was a good bipartisan effort,” said Sen. Angela Alsobrooks, D-Md., on Monday. She added, \u201cThis is an unregulated area that will now be regulated.\u201d<\/p>\n
Known as the GENIUS Act, the bill would establish guardrails and consumer protections for stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The acronym stands for \u201cGuiding and Establishing National Innovation for U.S. Stablecoins.\u201d <\/p>\n
It’s expected to pass Tuesday, since it only requires a simple majority vote \u2014 and it already cleared its biggest procedural hurdle last week in a 68-30 vote. But the bill has faced more resistance than initially expected. <\/p>\n
There is a provision in the bill that bans members of Congress and their families from profiting off stablecoins. But that prohibition does not extend to the president and his family, even as Trump builds a crypto empire from the White House. <\/p>\n
Trump hosted a private dinner last month at his golf club with top investors in a Trump-branded meme coin. His family holds a large stake in World Liberty Financial, a crypto project that provides yet another avenue where investors are buying in and enriching the president\u2019s relatives. World Liberty has launched its own stablecoin, USD1.<\/p>\n
The administration is broadly supportive of crypto’s growth and its integration into the economy. Treasury Secretary Scott Bessent last week said the legislation could help push the U.S. stablecoin market beyond $2 trillion by the end of 2028.<\/p>\n
Brian Armstrong, CEO of Coinbase \u2014 the nation\u2019s largest crypto exchange and a major advocate for the bill \u2014 has met with Trump and praised his early moves on crypto. This past weekend, Coinbase was among the more prominent brands that sponsored a parade in Washington commemorating the Army\u2019s 250th anniversary \u2014 an event that coincided with Trump\u2019s 79th birthday.<\/p>\n
But the crypto industry emphasizes that they view the legislative effort as bipartisan, pointing to champions on each side of the aisle. <\/p>\n
\u201cThe GENIUS Act will be the most significant digital assets legislation ever to pass the U.S. Senate,\u201d Senate Banking Committee Chair Tim Scott, R-S.C., said ahead of a key vote last week. \u201cIt\u2019s the product of months of bipartisan work.\u201d<\/p>\n
The bill did hit one rough patch in early May, when a bloc of Senate Democrats who had previously supported the bill reversed course and voted to block it from advancing. That prompted new negotiations involving Senate Republicans, Democrats and the White House, which ultimately produced the compromise version expected to win passage Tuesday.<\/p>\n
\u201cThere were many, many changes that were made. And ultimately, it\u2019s a much better deal because we were all at the table,\u201d Alsobrooks said.<\/p>\n
Still, the bill leaves unresolved concerns over presidential conflicts of interest \u2014 an issue that remains a source of tension within the Democratic caucus.<\/p>\n
Sen. Elizabeth Warren, D-Mass., has been among the most outspoken as the ranking member on the Senate Banking Committee, warning that the bill creates a \u201csuper highway\u201d for Trump corruption. She has also warned that the bill would allow major technology companies, such as Amazon and Meta, to launch their own stablecoins. <\/p>\n
If the stablecoin legislation passes the Senate on Tuesday, it still faces several hurdles before reaching the president\u2019s desk. It must clear the narrowly held Republican majority in the House, where lawmakers may try to attach a broader market structure bill \u2014 sweeping legislation that could make passage through the Senate more difficult. <\/p>\n
Trump has said he wants stablecoin legislation on his desk before Congress breaks for its August recess, now just under 50 days away.<\/p>\n","protected":false},"excerpt":{"rendered":"
WASHINGTON (AP) \u2014 The Senate is expected to approve legislation Tuesday that would regulate a form of cryptocurrency known as stablecoins, the first of what is expected to be a<\/p>\n