Joey Cappelletti, Mary Clare Jalonick, Alan Suderman, The Associated Press
WASHINGTON (AP) — The Senate is expected to approve a law regulating the form of cryptocurrency known as stubcoin on Tuesday.
The rapid movement laws sent to the House for potential revisions come shortly after the 2024 campaign cycle, with the crypto industry ranked among the country’s top political spenders, highlighting the growing influence in Washington and beyond.
Eighteen Democrats have shown support for the law as they are moving forward with a Republican majority in the 53-47 Senate. If passed, it will be the second major bipartisan bill to pass the Senate this year, following the January Raken Riley Act on Immigration Enforcement.
Still, most Democrats are opposed to the bill. They raised concerns that the measure would have little to do to address President Donald Trump’s personal economic interests in the crypto space.
“We certainly couldn’t include everything we would have wanted, but it was a good bipartisan effort,” Sen. Angela said Monday. She added, “This is a regulated, unregulated area.”
Known as an act of genius, the bill establishes guardrails and consumer protection for stubcoin, a kind of cryptocurrency normally locked in the US dollar. The acronym stands for “Guidelines and Establishment of National Innovation for Stablecoins.”
It is expected to pass Tuesday as it only requires simple majority votes, and has already cleared the biggest procedural hurdles with 68-30 votes last week. However, the bill faces more resistance than initially expected.
The bill has a provision that prohibits members of Congress and their families from gaining the benefits of Stablecoins. But even if Trump builds a crypto empire from the White House, the ban does not extend to the president and his family.
Last month, the Republican president held a private dinner at a golf club in Virginia, along with top investors in Trump branded memecoin. His family holds significant stakes in World Liberty Financial, a crypto project that launched its own Stablecoin, USD1.
According to public financial disclosures released Friday, Trump reported that he made $57.35 million from his token sales at World Liberty Financial in 2024. The meme coin linked to him, although split between multiple investors, generated an estimated $320 million in fees.
The administration is widely supportive of crypto growth and integration into the economy. Treasury Secretary Scott Becent said last week that the law would help boost the US stubcoin market by the end of 2028 by over $200 trillion.
Coinbase CEO Brian Armstrong, CEO of the bill’s leading advocate at the country’s largest crypto exchange, met with Trump and praised his early moves at Crypto. This past weekend, Coinbase was one of the more well-known brands that sponsored a parade to mark the 250th anniversary of the Army in Washington. This is an event coincided with Trump’s 79th birthday.
However, the crypto industry considers legislative efforts bipartisan, highlighting that it refers to champions on both sides of the aisle.
“The Genius Act will be the most important digital asset law ever to pass the US Senate,” Senate Banking Committee Chairman Tim Scott said last week ahead of a significant vote. “It’s the product of months of bipartisan work.”
The bill hit one rough patch in early May by members of Senate Democrats who voted to overturn the bill and stop it from moving forward. It prompted new negotiations that include Senate Republicans, Democrats and the White House, creating a compromised version that is expected to win on Tuesday.
“There were a lot of changes and in the end, it’s a much better deal because we were all at the table,” Brooks also said.
Still, the bill leaves behind unresolved concerns about the president’s conflict of interest. This remains the source of tension within the Democratic Caucus.
D-Mass. Sen. Elizabeth Warren is the most outspoken leader in the Senate Banking Committee, warning that the bill would create a “superhighway” for Trump’s corruption. She also warns that the bill will allow major tech companies such as Amazon and Meta to launch their own Stablecoins.
If Stablecoin law passes the Senate on Tuesday, it still faces several hurdles before it reaches the president’s desk. They must narrow Republican majority in the House, where lawmakers may try to attach a broader market structure bill.
Trump says he wants stable laws on his desk before Congress breaks for an August break of just under 50 days.
Original issue: June 17th, 2025, 10:17am EDT
