The U.S. Senate passes the stablecoin bill, marking a milestone victory for Trump and the cryptocurrency industry

According to the Zhitong Finance APP, the U.S. Senate passed the stablecoin bill on Tuesday local time with a vote of 68 in favor and 30 against, establishing regulatory rules for cryptocurrencies pegged to the U.S. dollar. This marks a milestone victory for the emerging cryptocurrency industry and U.S. President Donald Trump. The bill will be submitted to the House of Representatives for review. The market value of stablecoins related to Trump has reached $2 billion. The House of Representatives has been advancing its own legislation, including a more comprehensive measure to regulate the broader cryptocurrency market. House members must now decide whether to accept the Senate's bill or negotiate a compromise. The vote on stablecoins, which has been in the works for years, represents the most tangible return for the cryptocurrency industry to date. Last year, cryptocurrency giants poured significant funds into the election through the most well-funded corporate political action committee alliance in U.S. history, and they have similar plans for the midterm elections in 2026. The legislation requires that stablecoins pegged to the U.S. dollar hold short-term government bonds or similar products regulated by state or federal 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 ones, have already warned about potential deposit outflows and reduced credit channels. Large banks are considering issuing their own stablecoins to earn profits through reserve interest. Stablecoins have become a lucrative business, with major issuer Tether Holdings SA earning billions from its reserves. If the bill becomes law, technology companies and other large non-financial enterprises may also issue their own stablecoins, which could disrupt the long-standing separation between finance and business. Various efforts to amend the bill in the Senate have failed, including amendments related to Trump, credit card competition, consumer protection, and future government bailouts for stablecoins, as stablecoins will not be protected by federal deposit insurance. Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina, stated that he expects to hold hearings in July on a broader cryptocurrency market structure bill, but he anticipates that the bill will not pass the Senate until the fall. Supporters, including U.S. President and Treasury Secretary Scott Bentsen, have strongly advocated for stablecoins pegged to the U.S. dollar, claiming they could increase global demand for the dollar and U.S. bonds. Several Democrats, led by Senator Elizabeth Warren, believe that the stablecoin bill lacks sufficient protections for consumers and the financial system in the event of issuer failures, leading to customer fund losses and calls for taxpayer bailouts. They are pessimistic about advancing legislation that does not prohibit Trump's cryptocurrency profiteering. Tennessee Republican Senator Bill Hagerty, the main sponsor of the bill, stated that he has spoken with Trump and looks forward to putting the bill on Trump's desk "soon." The senator added that he hopes the House of Representatives will pass the bill "as soon as possible."