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The U.S. Senate Passes Procedural Vote on the "GENIUS Stablecoin Act"

The U.S. Senate passed the procedural vote on the "GENIUS Stablecoin Act" with a tally of 68 to 30.

Dollar-pegged stablecoins could explode to a $2 trillion market cap within a few years, Treasury Secretary Scott Bessent said on Wednesday while testifying at a Senate Appropriations subcommittee hearing. Scott told lawmakers the US government is moving to cement the dollar’s reserve currency status by backing legislation that would push stablecoins deeper into the financial system, with strict rules ensuring they are fully supported by Treasury bills and other short-term government debt. Scott said concerns about the dollar’s future have popped up over and over again in history. Each time, he added, the dollar has come back stronger — now, he thinks crypto is part of the next phase. “This administration is committed to keeping the reserve currency status and enhancing that,” Scott said during questioning. He also pointed out that ongoing legislation in Congress would create clear rules for dollar-linked stablecoins, which would have to be backed 1-to-1 by high-quality assets like T-bills. Scott said the $2 trillion number is not just wishful thinking. “I think that $2 trillion is a very, very reasonable number, and I could see it greatly exceeding that,” he told the committee. His position is that stablecoins backed by US debt will expand the dollar’s reach around the world, as more people start using them for daily transactions. He also argued that dollar-pegged coins will boost demand for US government debt globally — something that aligns with broader fiscal goals. Meanwhile, Congress is pushing hard to pass new stablecoin legislation. The Senate cleared a major procedural vote on Wednesday, 68-30, and is expected to pass the final bill as early as next week. The measure has backing from President Donald Trump, major crypto lobbying groups, and a handful of powerful lawmakers on both sides. One day before the Senate vote, the House Financial Services and Agriculture committees passed a broader crypto bill, after Republicans blocked changes that would’ve stopped Trump from profiting off his crypto holdings. Crypto giants, led by the Fairshake PAC and its affiliated entities, spent massive amounts of money during the last election to support pro-crypto candidates and policies. Now, those groups are backing the bill to make sure stablecoins can be used more widely in payments. Retailers are also throwing their weight behind it, hoping that the coins will give them an alternative to Visa and Mastercard, whose credit card processing fees have long been a problem for large merchants. Retailers aren’t just supporting the stablecoin bill — they’re also lobbying hard to attach a separate provision that would force large banks to offer more credit card processing network options beyond Visa and Mastercard. But Senate leaders are expected to block that effort, along with a separate push from Democrats to ban Trump from making money from crypto projects while in office. As for the banks, they’re divided. Smaller ones have been warning that stablecoins will pull deposits out of the traditional banking system, shrinking access to loans and everyday credit. Bigger banks, on the other hand, are exploring ways to create their own stablecoins that would let them keep control of customer funds — and earn interest on the reserves those coins are backed by. Scott didn’t speak on those fights. He stayed focused on the dollar and the role of crypto in reinforcing it. He emphasized that as long as these stablecoins are fully backed by US government debt, the result would be stronger demand for dollars at home and abroad. He also mentioned that while Citigroup analysts have predicted a more conservative estimate of $1 trillion in new Treasury purchases from stablecoins by 2030, the Treasury Department sees much bigger potential. “This is not just a possibility, it’s something we’re actively working to make real,” he said. The bill is a top priority for Scott and for the White House. Senate Banking Chair Tim Scott confirmed that he’ll hold a hearing on the broader crypto regulation bill in July, though it likely won’t pass until fall. Senate Majority Leader John Thune said on Wednesday that the Senate will aim to pass the stablecoin bill in the next few days and urged the House to act quickly to get it on Trump’s desk. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites

Connecticut has made a bold move to distance itself from government cryptocurrency involvement by unanimously passing House Bill 7082, now known as Public Act No. 25-66. This marks the country’s most expansive state-level prohibition on crypto-related government activity. The new law bars all state and municipal bodies from establishing cryptocurrency reserves or accepting digital assets as payment for taxes, fees, or any financial obligations. This sweeping action effectively halts any future state-supported crypto projects in Connecticut. In addition to the investment ban, the legislation outlines rigorous consumer protections for virtual currency service providers. Companies involved in money transmission must prominently display warnings that transactions are irreversible and that losses from fraud or errors may be unrecoverable. They are also required to disclose all material risks to customers and verify the identity of users under the age of 18. The legislation also revises the state’s broader financial oversight laws and introduces new definitions surrounding key digital finance terms such as digital wallets, kiosks, and control persons. Moreover, it compels crypto businesses licensed in Connecticut to implement enhanced compliance programs that meet new state standards. This hardline stance contrasts sharply with the growing number of states actively pursuing digital asset adoption. Bitcoin Laws data reveals that 31 states are currently considering Bitcoin reserve bills. Of them, 16 have advanced while 8 rejected similar measures. While some of those rejections may still be revisited, Connecticut’s legislation is significant for the breadth and decisiveness of its restrictions. Last month, New Hampshire officially became the first US state to establish a strategic Bitcoin reserve. On May 6, Governor Kelly Ayotte signed House Bill 302 into law, which allowed the state treasury to invest up to 5% of its funds in Bitcoin and other digital assets with market capitalizations over $500 billion. Currently, only Bitcoin qualifies. The law, which is inspired by Satoshi Action’s policy framework, requires secure, US-regulated custody and aims to diversify reserves while upholding fiscal responsibility.