The U.S. Senate passed the GENIUS Act on Tuesday, bringing the cryptocurrency industry closer to formal federal recognition through regulation of stablecoins—a significant pivot in Washington’s approach to digital assets. The 68–30 vote signals broad, if uneasy, bipartisan support, marking the first major crypto legislation to clear the chamber.

Stablecoins, digital assets pegged to the U.S. dollar, have long been positioned as a bridge between volatile crypto markets and traditional finance. Their legitimization via federal legislation reflects an intense lobbying effort by the industry, combined with shifting regulatory attitudes under the Trump administration.

Senator Bill Hagerty (R-TN), the bill’s primary sponsor, championed it as a necessary modernization of the U.S. financial system. “To modernize our payment system and to restore our nation’s competitive edge, we must act now,” he said during floor debate. The legislation, he added, will reduce friction between decentralized assets and mainstream financial institutions.

Though 18 Democrats joined Republicans in supporting the bill, opposition was vocal. Senator Elizabeth Warren (D-MA) condemned the Act’s “thin regulation,” comparing it to the deregulatory climate preceding the 2008 financial crisis. “It’s the same move a second time,” she told reporters. Concerns focused particularly on the bill’s failure to include conflict-of-interest restrictions, including proposals to bar President Trump and his family from profiting from stablecoin ventures.

That omission followed failed efforts by Democrats to insert over 100 amendments. One, by Senator Jeff Merkley (D-OR), would have prohibited federal officials and their relatives from issuing or profiting from stablecoins. Senator Chuck Schumer (D-NY) also objected to the absence of anti-corruption safeguards but acknowledged marginal improvements in the final draft.

Despite early assurances from Senate Majority Leader John Thune (R-SD) that Democratic proposals would be considered, the amendment process was ultimately curtailed. The move left final negotiations to a small bipartisan group, effectively sidelining concerns about Trump’s ongoing ties to the crypto industry—ties that have intensified since his return to office.

Trump-era deregulatory policies contrast sharply with the Biden administration’s prior enforcement stance, contributing to a reshaped legislative environment. A wave of crypto-backed super PACs also played a role, spending over $130 million during the 2024 election cycle to influence close races. Candidates supported by these groups won 53 of 58 contests.

Senator Josh Hawley (R-MO) opposed the bill from the right, objecting to what he saw as weak measures to keep tech firms like Amazon and Alphabet from issuing stablecoins. He called for a categorical ban, citing the dangers of tech giants entering monetary issuance. Senator Rand Paul (R-KY) dissented for the opposite reason, arguing that the bill’s regulatory hurdles would stifle innovation.

For crypto firms, the legislation represents a watershed moment. Circle, the second-largest stablecoin issuer globally, went public this month with a 170% day-one stock surge. Executives at Ava Labs and other crypto platforms welcomed the legislation as a step toward broader adoption and integration into the financial system. “This is a foundation for legitimizing stablecoins,” said Ava Labs President John Wu in a statement.