The U.S. Senate Approves a Law to Regulate Stablecoins. Who Stands to Gain from Cryptocurrency?
A stablecoin is a type of digital currency whose value is linked to real-world assets like the dollar or gold. This keeps its price stable, making it more reliable for commercial transactions. This law aims to create clear and strong regulations for companies that issue stablecoins. Until now, this sector has been governed by various state and federal laws.
The U.S. Senate has approved moving forward with a law to regulate the cryptocurrency known as stablecoin. In a procedural vote held on Monday, 66 senators voted in favor while 32 opposed it. Two weeks ago, the Democrats had blocked it, but after some changes, they have now extended their support.
What is a Stablecoin and Why is a Law Needed?
A stablecoin is a type of cryptocurrency whose value is tied to real-world assets like the U.S. dollar or gold. Its value generally remains equal to 1 dollar, which makes it more stable and useful in trade compared to other cryptocurrencies. Given the rapid growth and risks in this industry, bringing it under a consistent central law is considered necessary.
Trump and the Crypto Business
The law has been controversial also because U.S. President Donald Trump and his family are directly involved in several crypto projects. Trump recently launched a “meme coin”, which has generated over $320 million in revenue. One of his family businesses, World Liberty Financial, has also introduced a stablecoin called USD1, which is now receiving significant investment from Arab countries.
Democratic Divisions, but Conditional Support
Initially, there was strong opposition from the Democrats. Senator Elizabeth Warren stated, “This law will promote Trump’s corrupt crypto activities.” However, after adding some strict provisions—such as tight oversight of foreign companies, barring large tech firms like Meta and Google from issuing stablecoins, and preventing lawmakers from issuing crypto—some Democrats agreed to support the law.
Next Step for the Law
The Senate will now hold final debates and voting on the bill, which could take place this week. If the law is passed, it will provide the stablecoin industry in the U.S. with a strong and transparent legal framework, promoting consumer protection, economic stability, and technological innovation.
Statement from Senator Warner
Senator Mark Warner said, “The stablecoin market has now reached $250 billion. The U.S. can’t afford to wait any longer. We need clear rules to ensure consumer safety, protect national interests, and encourage responsible innovation.”
This law could mark a critical turning point for both the crypto industry and American politics.
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