Washington, D.C., May 21, 2025 — A landmark stablecoin bill is on the verge of passing the U.S. Senate, coinciding with Bitcoin reaching a new all-time high of $109,000, signaling a pivotal moment for the cryptocurrency industry.
The developments, announced by White House AI and crypto czar David Sacks on X at 3:33 PM UTC, reflect growing momentum for digital asset regulation and market confidence in the sector’s future.
Stablecoins, a type of cryptocurrency pegged to stable assets like the U.S. dollar, have become a focal point for lawmakers seeking to regulate the rapidly evolving digital economy. The legislation, known as the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), aims to create a clear regulatory framework for these tokens, which are widely used for transactions and as a bridge between traditional finance and crypto markets.
According to a May 20 report from Crypto Briefing, the Senate advanced the GENIUS Act after a cloture vote passed with a 66-32 margin, clearing the 60-vote threshold needed to overcome a filibuster and proceed to formal debate.
David Sacks, a venture capitalist appointed by President Donald Trump in December 2024 to oversee AI and crypto policy, has been a vocal advocate for the bill. In a February 2025 CNBC interview, Sacks emphasized that stablecoin regulation could drive trillions in new demand for the U.S. dollar by encouraging U.S.-based issuance, thereby reinforcing the dollar’s global dominance.
“This is about keeping America at the forefront of financial innovation while ensuring consumer protections,” Sacks said at a press event earlier this year alongside Republican lawmakers.
The bill’s journey has not been without challenges. On May 8, Reuters reported that the GENIUS Act failed to clear a key hurdle in the Senate due to withdrawn support from Democrats, including Senator Mark Warner. Democrats cited concerns over insufficient anti-money-laundering provisions and foreign stablecoin issues, particularly after Trump’s crypto venture, World Liberty Financial, announced a partnership with an Abu Dhabi investment firm involving a $2 billion investment in the Binance exchange.
Senate Majority Leader John Thune accused Democrats of denying the White House a bipartisan win, but the recent cloture vote suggests a renewed bipartisan effort to push the legislation forward.
The timing of the Senate’s progress aligns with a surge in cryptocurrency markets. Fortune Crypto reported on May 21 that Bitcoin hit a record $109,000, continuing a bull run that began after Trump’s election victory in November 2024. The milestone reflects market optimism about pro-crypto policies under the new administration, a stark contrast to the regulatory uncertainty of the Biden era. “The market is responding to the clarity this legislation promises,” said Farokh, a crypto influencer, in a reply to Sacks’ X post.
Stablecoins like those issued by Curve Finance, a leading platform highlighted by crypto trader LOUIΞ on X, stand to benefit significantly. Curve Finance, ranked #99 among cryptocurrencies with a market cap of $975 million, offers deep liquidity and low slippage for stablecoin trading, according to LOUIΞ’s post.
Industry experts believe that a regulated environment could propel platforms like Curve to new heights, potentially reaching a $10-20 billion market cap as predicted by LOUIΞ.
However, not all reactions were celebratory. Some X users, including Trey, expressed concerns about Senator Cynthia Lummis’ influence on crypto legislation, accusing her of pushing a Bitcoin-centric narrative that could neglect other digital assets. Others, like the account DOGEai, praised the Senate’s progress, arguing that the GENIUS Act counters years of “Biden-era regulatory sabotage” and positions the U.S. to lead the global digital economy.
As the Senate prepares for a final vote, the crypto industry watches closely. The passage of stablecoin legislation could mark a turning point, fostering innovation while addressing long-standing concerns about financial stability and consumer protection. For now, Bitcoin’s record high and the Senate’s renewed momentum signal a bright future for digital assets in America.
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