Stablecoin has passed the US Senate threshold. The atmosphere of accepting cryptocurrency as a legitimate financial instrument is becoming full-fledged.
On the 17th (local time), the US Senate passed the Stablecoin regulation bill, known as the 'GENESIS' bill, with 68 votes in favor and 30 votes against. The ball is now in the House of Representatives' court.
The key of this bill is to strengthen the issuance and collateral requirements of stablecoins, and mandate compliance with anti-money laundering standards. It also includes investor protection regulations. The industry welcomes this bill as a policy attempt to recognize stablecoins as a 'legitimate financial instrument'.
Stablecoins are cryptocurrencies designed to maintain a stable value, mostly pegged to the US dollar. As many current stablecoins are backed by US Treasury bonds, adding legal stability could positively impact maintaining the dollar's global status.
In fact, US Treasury Secretary Scott Bessent emphasized before the bill vote that "through this bill, stablecoins can grow to $3.7 trillion by 2030".
Meanwhile, some provisions of the bill are controversial. While prohibiting senators and their families from profiting from stablecoins, an exception is made for the president and their family.
This provision is analyzed as targeting the Trump family's cryptocurrency investments. Trump's sons Donald Trump Jr. and Eric previously established a platform called 'World Liberty Financial (WLF)' and launched the 'Trump Meme Coin' and stablecoin 'USD1'. Democratic Senator Elizabeth Warren strongly opposed, saying "this bill is laying a superhighway for Trump's corruption".
Despite the stablecoin bill passing the Senate, the cryptocurrency market showed a downward trend due to heightened tensions in the Middle East. As of 8:48 PM (Eastern Time) on the 17th, Bitcoin was trading at $104,603, down 2.05% from the previous day.
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