US Senate Moves to Regulate Stablecoins Amid Record Adoption and Trump Crypto Ties
Stablecoins now account for over 60% of cryptocurrency transaction volume in 2025, highlighting their increased role in trading, payments, and remittances. Throughout 2024 and 2025, major stablecoins maintained at least a 4% share of total crypto market capitalization, reflecting strong confidence and widespread use. Although 99% of stablecoin activities were legitimate in 2024, these assets were still involved in 60% of illicit crypto transactions in Q1 2025, underscoring both their utility and risk. In response, the US Senate is advancing the bipartisan GENIUS Act, aimed at establishing a national framework for stablecoin oversight and legitimacy. The bill includes prohibitions on members of Congress and their families profiting from stablecoins, yet controversially excludes the president and immediate family, drawing criticism amid Donald Trump’s expanding crypto involvement and stake in World Liberty Financial (WLFI), issuer of stablecoin USD1. Supporters believe the GENIUS Act will provide regulatory clarity and mainstream acceptance for the US crypto sector, while critics caution against increased risks of corruption and potential entry of tech giants into stablecoin issuance. If the bill passes the Senate, it will proceed to the Republican-led House, where additional rules could be added, potentially delaying enactment. Crypto traders should closely monitor these legislative developments, as future regulations may significantly impact stablecoin utility, market structure, and overall market dynamics.
Neutral
The US Senate’s advancement of the GENIUS Act signals an important step toward regulatory clarity for stablecoins, a key segment of the crypto market. While the establishment of clear rules could promote mainstream acceptance and stability—potentially bullish factors—questions around political interests, the omission of presidential families from restrictions, and the possibility of delays in the House introduce uncertainties. Furthermore, stablecoins’ involvement in illicit transactions raises regulatory risks. For now, the overall market impact is neutral: traders may see short-term caution due to legislative uncertainty, but longer-term the move could foster growth if regulations are implemented constructively.