The Senate has passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, also known as the GENIUS Act, a bill designed to regulate stablecoins. This kind of cryptocurrency is usually backed one-to-one by the U.S. dollar. Among the bill’s many provisions are efforts to set up guardrails and consumer protections around stablecoins.

The GENIUS Act moved to the House after a 53-47 bipartisan vote in support from the Senate. The bill's passage comes after months of bipartisan negotiations, but not without raising concerns about potential conflicts of interest related to President Donald Trump's crypto investments.

Bipartisan Support and Legislative Details

The GENIUS Act was possible due to months of bipartisan collaboration. In a bipartisan display, an even larger group of 18 Democratic senators vigorously crossed the aisle to support this legislation. Senator Angela Alsobrooks noted that "many, many changes" were made during negotiations and that "it's a much better deal because we were all at the table."

Treasury Secretary Scott Bessent has been an enthusiastic proponent of the bill and has repeatedly called on the Senate to approve it. He said it could help stablecoins "grow into a $3.7 trillion market by the end of the decade."

Dissenting Voices

Perplexingly, this popular, bipartisan bill attracted opposition though oddly from both sides of the aisle. In fact, only two Republican senators, Josh Hawley and Rand Paul, voted against their party to support the measure.

Senator Cynthia Lummis, one of the bill’s co-sponsors, conceded those reservations, saying, “I hate it, but it’s good enough.”

Conflict of Interest Concerns

The bill has drawn significant public opposition, even from high-profile elected officials like Senator Elizabeth Warren. She thinks it doesn’t do enough to address President Donald Trump’s own financial interests in the crypto space. She raised red flags by stating that the bill establishes a “super highway” for Trump corruption.

Former President Donald Trump recently disclosed that he made $57.35 million from token sales with World Liberty Financial in 2024. However, these earnings have sparked widespread alarm that the legislation would largely redound to the President’s benefit.

Future Implications

President Donald Trump has stablecoin legislation drafted and garnished for his signature before Congress leaves for their August recess. This action indicates the administration’s support for the GENIUS Act. Coinbase CEO Brian Armstrong has met with President Donald Trump and praised his early moves on crypto, indicating the industry's interest in the legislation.

Central to the bipartisan support for the bill was Senator Bill Hagerty’s focus on addressing U.S. He testified that this legislation would have “far reaching implications” for the financial system.