The bill was a significant step toward giving the cryptocurrency industry the credibility and legitimacy it has sought, without limitations it has worked to head off.
The Senate on Tuesday passed legislation to establish a regulatory framework for stablecoins, putting the cryptocurrency industry, which had long been viewed with suspicion by lawmakers in Washington, on the brink of a major policy breakthrough.
Bipartisan approval of the bill, known as the GENIUS Act, followed an aggressive lobbying campaign aimed at transforming the cryptocurrency industry’s image from scandal-plagued experiment to legitimate financial sector.
Senate passage came over the fierce objections of many Democrats, who warned that the measure lacked strict-enough regulations or oversight to prevent abuses, including anti-corruption rules that would bar President Trump and his family from continuing to profit from cryptocurrency.
The bill still must be passed by the House and signed by the president. But the 68-30 vote in the Senate marked the first time the chamber has approved major cryptocurrency legislation. It represented a significant step toward giving the industry what it has long sought from Washington: the credibility that comes with federal oversight.
Stablecoins, a type of digital currency tied to the value of the U.S. dollar, are often seen as comparatively reliable types of cryptocurrency. These cryptocurrencies are designed to avoid the wild fluctuations in value of some popular coins like Bitcoin, making them something of a bridge to the world of traditional currency.
Senator Bill Hagerty, Republican of Tennessee and the bill’s lead sponsor, said the legislation would be a significant step toward breaking down the barriers between traditional financial markets and decentralized markets. He said it would help bring the country’s financial system into the modern era.