U.S. Senate Passes Legislation Regulating Stablecoins in a Win for Trump and the Crypto Industry

The U.S. Senate has passed new legislation regulating dollar-pegged stablecoins in a historic move seen
as a clear victory for the growing digital currency industry and former President Donald Trump.
The bill was approved by 68 votes to 30 in a rare moment of bipartisan agreement in a deeply divided Senate.

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The new legislation requires stablecoin issuers to hold reserves fully equivalent to the value of the issued coins,
in the form of short-term government debt or similar financial instruments.
These assets must be overseen by federal or local regulatory authorities.
Supporters of the bill hope it will help turn stablecoins into a mainstream payment method,
especially since several retailers have backed the initiative as a faster and cheaper alternative to credit cards or bank checks.

Although the bill represents a significant leap forward, it has also stirred considerable controversy—particularly among small banks.
They have warned that the regulated introduction of stablecoins could drain deposits from their institutions and reduce their ability to offer credit,
while large banks are exploring the issuance of their own stablecoins to profit from interest on reserve assets.

Meanwhile

the House of Representatives continues working on its own version of a broader digital assets market regulation bill.
Lawmakers will need to decide whether to pass the Senate bill as is or negotiate a final compromise version.
Efforts to amend the Senate bill failed, especially proposals aimed at limiting Trump’s personal gains from the crypto market,
strengthening consumer protections, or addressing potential government bailouts of stablecoin issuers.

This legislation is seen as the culmination of years of lobbying by the crypto industry,
which has poured hundreds of millions of dollars into supporting the election of crypto-friendly lawmakers.
It is considered the first real legislative victory for the sector in the United States.

On the other hand

a group of Democrats led by Senator Elizabeth Warren opposed the bill,
arguing it fails to provide sufficient consumer protections in the event of a stablecoin issuer’s collapse
—potentially triggering demands for uncertain government bailouts.
The group also criticized the bill for not preventing Trump’s financial gain from digital assets, which they viewed as an ethical and political concern.

If passed by the House, this bill would mark a radical shift in the landscape of digital currency regulation in the U.S. and could spark a new wave of global adoption of stablecoins within the financial system.

U.S. Senate Passes Legislation Regulating Stablecoins

U.S. Senate Passes Legislation Regulating Stablecoins

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