WASHINGTON (AP) — The U.S. Senate is expected to pass a sweeping piece of cryptocurrency legislation on Tuesday aimed at regulating stablecoins—a pivotal moment for the digital asset industry. But as lawmakers race to give crypto legitimacy, one glaring issue remains unresolved: President Donald Trump’s personal crypto fortune.
The legislation, known as the GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, would be the first major federal law to place guardrails around stablecoins, a popular type of cryptocurrency typically pegged to the U.S. dollar. The bill has garnered rare bipartisan backing in a sharply divided Senate, where it is expected to pass by a simple majority.
The measure passed its largest procedural hurdle last week in a 68-30 vote and now moves to the House, where revisions are likely. Still, the legislation has stirred debate on both sides of the aisle, particularly over its silence on the president’s personal crypto dealings.
Crypto Bill Gains Speed as Trump’s Empire Grows
The bill’s momentum follows a 2024 election season in which the crypto industry became one of the nation’s top political spenders, illustrating its growing clout in Washington. Yet Democrats remain split on whether the GENIUS Act goes far enough, especially as President Trump builds a crypto empire from within the White House.
While the bill includes a provision banning members of Congress and their families from profiting off stablecoins, it does not apply to the president or his family. That omission has drawn sharp criticism from some Senate Democrats who fear that Trump’s personal financial interests in cryptocurrency could undermine public trust in the legislation.
Last month, Trump hosted a private dinner at his Virginia golf club with major investors in a Trump-branded meme coin. His family also holds a significant stake in World Liberty Financial, a crypto venture that launched its own stablecoin, USD1.
According to a public financial disclosure released Friday, Trump earned $57.35 million from token sales through World Liberty Financial in 2024. A meme coin linked to the former real estate magnate has reportedly generated $320 million in fees, though those earnings are split among various investors.
Democrats Divided but Bill Moves Forward
“This is an unregulated area that will now be regulated,” said Sen. Angela Alsobrooks, D-Md., on Monday. “We weren’t able to include certainly everything we would have wanted, but it was a good bipartisan effort.”
Despite backing from 18 Democratic senators, the majority of the party’s caucus remains opposed. At the heart of the opposition is the belief that the bill inadequately addresses the risk of presidential conflicts of interest.
Sen. Elizabeth Warren, D-Mass., a longtime critic of the crypto industry and ranking member on the Senate Banking Committee, has condemned the bill, warning it would create a “superhighway for Trump corruption.” She also raised alarms about how the legislation could empower tech giants like Amazon and Meta to launch their own stablecoins with limited oversight.
The bill nearly stalled in early May when a group of Senate Democrats reversed their support, leading to renewed negotiations with Republicans and the White House. A compromise version eventually emerged, paving the way for the vote expected Tuesday.
“There were many, many changes that were made. And ultimately, it’s a much better deal because we were all at the table,” Alsobrooks added.
Political Power and Industry Support
While critics raise ethical red flags, the GENIUS Act has received strong support from industry leaders and administration officials. Treasury Secretary Scott Bessent said last week that the bill could help push the U.S. stablecoin market beyond $2 trillion by the end of 2028.
Brian Armstrong, CEO of Coinbase, has praised the legislation and Trump’s early crypto moves. Coinbase, the country’s largest crypto exchange, was among the sponsors of a military parade in Washington this weekend that coincided with Trump’s 79th birthday.
Senate Banking Chair Tim Scott, R-S.C., has hailed the bill as “the most significant digital assets legislation ever to pass the U.S. Senate,” emphasising its bipartisan origins.
Road Ahead in the House
If the bill passes the Senate as expected, it will face another test in the narrowly Republican-controlled House, where lawmakers may try to expand it by attaching broader market structure provisions. Such additions could complicate the bill’s path back through the Senate.
President Trump has publicly urged lawmakers to send stablecoin legislation to his desk before Congress breaks for its August recess, now less than 50 days away.
But for all its progress, the GENIUS Act continues to spotlight an uncomfortable reality for lawmakers: as Washington begins regulating crypto, one of the industry’s biggest beneficiaries now resides in the Oval Office.
