Crypto stablecoin bill passes early Senate vote

How cryptocurrencies work

As cryptocurrencies and related technologies reach into politics, intertwine with the larger economy and impact the environment, everyone could use a sense of what they are and how they work.

The Senate voted this week to move forward with legislation to regulate a form of cryptocurrency called stablecoins, two weeks after Democrats blocked the measure.

What are stablecoins?

Big picture view:

Stablecoins are a fast-growing corner of the cryptocurrency industry that have produced enormous profits for some of the major players involved. 

They offer a buffer from cryptocurrency’s notorious volatility because they are pegged to real-world assets, like U.S. dollars or gold. Typically, that means a single stablecoin is worth $1, making them a much more reliable digital asset for commercial transactions than other forms of crypto.

Stablecoin bill

In summary:

The stablecoin bill could regulate how stablecoin issuers operate in the U.S. 

The backstory:

The move to regulate the industry has been bipartisan. The bill would aim to create a federal framework to regulate the stablecoin industry, which is currently governed by a patchwork of existing federal and state laws.

Dig deeper:

Trump’s involvement in the crypto industry has complicated the legislation’s path, as some Democrats say the legislation could help Trump enrich himself. 

Trump launched a meme coin earlier this year that has generated more than $320 million in fees for its creators, according to the blockchain analysis firm Chainalysis. And he is set to attend a dinner May 22 that’s open to almost anyone who buys enough of the coins.

And another Trump-family linked crypto venture called World Liberty Financial recently announced that it was issuing its own stablecoin, called USD1. 

Big picture view:

Trump’s administration has already taken many early actions without Congress to boost crypto, including establishing a strategic bitcoin reserve and undoing previous enforcement actions. 

But Trump needs Congress to get some of his and the deep-pocketed industry’s top priorities passed, including enacting the stablecoin legislation.

What is the GENIUS Act?

The GENIUS Act is the formal name for the stablecoin bill: Guiding and Establishing National Innovation for U.S. Stablecoins.

Senate votes on crypto stablecoin bill

FILE - The U.S. Capitol Dome is seen behind the top of the entrance to the senate side of the Capitol on March 18, 2025, in Washington, DC. (Photo by J. David Ake/Getty Images)

By the numbers:

The procedural vote passed Monday 66-32 in the Senate. Sixteen Democrats voted with the majority of Senate Republicans. 

Dig deeper:

Several Democrats reversed and voted to move forward with the legislation after negotiations with Republicans in recent days.

What's next:

The Senate will now consider the bill for final passage and could vote as soon as this week, depending on the number of amendments offered by Democrats and Republicans.