Senate approves major cryptocurrency regulation bill with bipartisan support, forwarding it to the House

Senate Passes Regulatory Bill for Cryptocurrency

WASHINGTON – After some back and forth, Senate Republicans teamed up with Democrats on Tuesday to approve a significant cryptocurrency bill, laying the groundwork for new regulations on stablecoin issuers.

The vote on the Genius Act came in at 68-30, with support from 18 Democrats alongside the majority of Republicans. Only two Republicans, Sen. Rand Paul from Kentucky and Josh Hawley from Missouri, opposed the bill.

This marked a notable moment as the Senate moved to impose major regulations on digital assets.

“This bill takes the U.S. closer to being a global leader in cryptocurrency,” said the bill’s author from Tennessee during his speech on the Senate floor. “It’s designed to strengthen the control over the U.S. dollar, enhance customer protection, and boost demand for the U.S. Treasury.”

According to Hagerty, another supporter, “Today is significant for innovation in the U.S.”

The Genius Law is now heading to the House, which is led by Republicans and is working on its own bipartisan legislation aimed at setting up a regulatory framework for digital assets.

Meanwhile, Washington continues to grapple with the best approach to regulating the fast-evolving cryptocurrency landscape. The Democratic Party is somewhat divided, with some members pressing Congress to act more decisively in an industry they believe is mired in conflicts of interest, especially regarding President Trump’s connections.

The Senate Banking Committee had previously passed this version of the Genius Act in April, with five Democrats in support. However, a push from minority leader Chuck Schumer and two Republicans in May for added national security and anti-money laundering measures stalled further progress.

A bipartisan group, including Hagerty, Cynthia Lummis from Wyoming, Mark Warner from Virginia, Kirsten Gillibrand from New York, and Reuben Gallego from Arizona, later negotiated changes to address Democratic concerns.

These adjustments introduced safeguards focusing on consumer protection. The new measures ensure that tech companies can issue digital tokens tied to fiat currencies like the U.S. dollar and set ethical standards for government officials.

This bipartisan approach garnered broader Democratic support, allowing the legislation to clear the necessary 60-vote hurdle.

“I think we were able to bring more people on board because of the hard work we put in together. It feels like a real legislative win,” Lummis mentioned before casting her vote. “They got some of what they wanted, shaping the law significantly.”

However, some Democrats expressed concerns. They felt the changes didn’t do enough to bar Trump and his family from pursuing their cryptocurrency ventures. Recent financial disclosures highlighted that Trump’s family cryptocurrency firm, World Liberty Financial, reportedly made $57.3 million last year.

Senator Elizabeth Warren, a prominent critic, told reporters, “This bill comes from an industry that feeds off Donald Trump’s crypto profitability, undermining consumer protection and national security.”

The Act contains provisions meant to stop officials from issuing stable payment products while in office. But Warren argued that it still lacks comprehensiveness to prevent illegal activities by criminals using stablecoins.