Crypto Industry Hopes for Win on Stablecoins

The crypto industry could notch its first major legislative win as the Senate moves closer to passing a bill to regulate stablecoins, a foundational part of the $3.3 trillion crypto market, Joe Light reported for Barron’s Daily.

Stablecoins, which have a combined market value of $250 billion, are primarily used for crypto trading.

The Senate is expected to hold a procedural vote as soon as today on the GENIUS Act, which would require stablecoins—whose value is typically pegged to the U.S. dollar—to be backed by reserves in highly liquid assets such as Treasury bills.

The bill also mandates that issuers comply with anti-money-laundering and terrorism finance laws and prioritize customer redemptions in the event of bankruptcy.

Stablecoins, which have a combined market value of $250 billion, are primarily used for crypto trading. The largest, USDT, is issued by Tether Holdings. The second-largest, USDC, is issued by U.S.-based Circle in partnership with Coinbase Global.

While the legislation could help bring clarity to the sector, concerns remain.

Tech giants like Meta Platforms may enter the stablecoin market, and President Donald Trump and his family reportedly stand to benefit financially from their majority stake in stablecoin issuer World Liberty Financial.

The industry is also lobbying for future legislation to regulate crypto exchanges like Coinbase and token issuers, a far more complex and politically charged effort.