The U.S. Senate passes stablecoin bill, Trump and the crypto industry win landmark victory.

The Stablecoin Act was passed by the US Senate on Tuesday with a vote of 68 in favor and 30 against. This bill establishes regulatory rules for cryptocurrencies pegged to the US dollar, marking a milestone victory for the emerging crypto industry and US President Donald Trump. The bill will now be submitted to the House for consideration. The market value of stablecoins related to Trump has reached $2 billion. The House has been pushing forward its own legislation, including a more comprehensive measure to regulate the broader crypto market. House members must now decide whether to accept the Senate's bill or negotiate a compromise. The long-awaited stablecoin vote is the most concrete reward for the crypto industry to date. Last year, crypto giants poured a significant amount of money into the midterm elections through the wealthiest corporate political action committee alliance in US history, and they have similar plans for the 2026 midterm elections. The legislation requires stablecoins pegged to the US dollar to hold short-term government bonds or similar products regulated by state or federal regulatory authorities on a one-to-one basis. Industry supporters hope this legislation will make stablecoins a mainstream payment method. Retailers support the bill in hopes that stablecoins can provide a cheaper and faster transaction processing method than traditional banking products like credit cards and checks. Banks, especially smaller banks, have issued warnings about potential deposit outflows and reduced credit channels. Large banks are considering issuing their own stablecoins to profit from interest on reserve funds. Stablecoins have become a profitable business, with the main issuer, Tether Holdings SA, earning billions of dollars from its reserves. If this bill becomes law, tech companies and other large non-financial corporations may also issue their own stablecoins, potentially disrupting the long-standing separation of finance and commerce. Efforts to amend the bill in the Senate have failed, including amendments related to Trump, credit card competition, consumer protection, and future government assistance for stablecoins, as stablecoins will not be protected by federal deposit insurance. Senate Banking Committee Chairman, Republican Tim Scott of South Carolina, expects to hold a hearing in July on a broader crypto market structure bill, but expects the bill to pass in the Senate until the fall. Supporters, including US President and Treasury Secretary Scott Benson, heavily endorse stablecoins pegged to the US dollar, saying they could increase global demand for the dollar and US bonds. Several Democrats, including Senator Elizabeth Warren, believe the stablecoin bill lacks sufficient consumer and financial system protection in the event of issuer insolvency, leading to customer fund losses and calls for taxpayer bailouts. They hold a pessimistic view on legislation that does not prohibit Trump's crypto profiteering activities. Senator Bill Hagerty, a Republican from Tennessee and the main sponsor of the bill, stated that he has spoken with Trump and looks forward to placing the bill on Trump's desk "soon." The senator added that he hopes the House will pass the bill "as soon as possible."