Stablecoins Legislation Signals Major Shift in Crypto Regulation

The Senate has passed the GENIUS Act to regulate stablecoins, a step seen as enhancing the legitimacy and consumer confidence in the cryptocurrency sector. Despite resistance and concerns over Trump's financial interests, the bill indicates bipartisan efforts for regulation and positions the U.S. as a leader in crypto governance.

The U.S. Senate has advanced groundbreaking legislation to regulate stablecoins, a growing segment of the cryptocurrency market. The passage of the GENIUS Act, which stands for "Guiding and Establishing National Innovation for US Stablecoins," marks a pivotal move in the legislative landscape.

Passed by a vote of 68-30, the bill saw bipartisan support, with some Democrats crossing party lines. Concerns were raised regarding former President Donald Trump's crypto interests, yet the legislation is seen as a key step towards regulation. The bill seeks to establish guardrails and consumer protections amid an ever-expanding digital asset market.

Treasury Secretary Scott Bessent highlighted the potential $3.7 trillion growth of the stablecoin market by the decade's end. Despite some political friction, the bill's passage underscores a commitment to making the U.S. a leader in the global crypto economy.

(With inputs from agencies.)