U.S. Senate advances legislation to regulate stablecoins, a form of cryptocurrency

The Senate has voted to move forward with legislation to regulate stablecoins.

The Senate has voted to move forward with legislation to regulate a form of cryptocurrency called stablecoins, two weeks after Democrats blocked the measure.

Monday’s 66-32 procedural vote keeps one of President Donald Trump’s top legislative priorities on track for passage and highlights the growing political strength of the cryptocurrency industry, which spent heavily in last year’s election and has amassed a large war chest for next year’s midterms. Several Democrats reversed and voted to move forward with the legislation after negotiations with Republicans in recent days.

The fate of the legislation, which would regulate how stablecoin issuers operate in the U.S., had been uncertain in recent weeks despite early bipartisan support. Senate Democrats blocked it earlier this month in part over concerns about how Trump and his family were benefiting from private crypto endeavors, including a newly launched stablecoin.

Republicans won support from Democrats after strengthening regulations on foreign issuers, beefing up enforcement and barring large tech companies like Meta and Google from issuing their own stablecoins. The Senate will now consider the bill and could vote on final passage as soon as this week, depending on the number of amendments offered by Democrats and Republicans.

Still, Democrats were divided on the legislation. Massachusetts Sen. Elizabeth Warren and others have said the bill could help Trump enrich himself and needs stronger protections.

“Unfortunately, the final bill does nothing — nothing — to rein in the President’s crypto corruption,” Warren said ahead of the bill’s passage. She said the legislation would “accelerate Trump’s corruption by supercharging the size of the stablecoin market” and make Trump “the regulator of his own financial product.”

Negotiators added tougher ethics rules for members of Congress and the executive branch, including preventing members of Congress from issuing stablecoins. But Warren and several other Democrats said it wasn’t enough. “This Congress should be a check on the president,” Warren said.