Senate's Proposed Crypto Legislation on Stablecoins Hits a Roadblock
Dropping the Shackles on Stablecoins: A Legislative Fiasco
In a jarring turn of events, the U.S. Senate failed to pass a bill designed to regulate stablecoins, a form of cryptocurrency pegged to traditional currencies like the dollar. The "Stable Act" came crashing down, scraping together only 48 votes, far from the 60 votes it needed in the upper chamber.
Two Republican stalwarts joined the Democrats in wielding their veto on Thursday, denying President Donald Trump a much- coveted bipartisan victory. Senate Majority Leader, John Thune, had his feathers ruffled, branding the dissenters as naysayers that impeded Trump's triumph.
Yet, the Democratic side had a different story to tell. They argued that the bill required refinement, arguing the need for stronger regulations governing foreign stablecoins and tighter anti-money laundering measures.
The crypto industry was left reeling, their hopes for a regulated future dashed. The "Stable Act" had been hailed as a done deal within the crypto community, who had campaigned tirelessly to depict the regulation of stablecoins as a bipartisan issue. Interestingly, during the presidential and congressional elections of the previous year, the crypto-friendly lawmakers received over $119 million in donations from the industry[1].
The contentious issue has escalated since an announcement by Trump's crypto firm, World Liberty Financial, concerning its stablecoin. Reportedly, the stablecoin is set to be utilized in a $2 billion investment by a fund from Abu Dhabi in the crypto exchange Binance[1].
Stablecoins are digital currencies engineered for price stability, acting as a means for payment or investment. The value of these digital tokens is often pegged to physical currencies like the dollar on a one-to-one ratio. The most significant stablecoins by market capitalization include Tether and USD Coin, while the largest stablecoin pegged to the euro is EURC[1]. According to crypto data provider CoinMarketCap.com, the combined market value of all stablecoins currently stands at about $241 billion, with Tether accounting for more than half of that[1].
Within the crypto market, stablecoins make up a relatively marginal portion, with the total market capitalization of all cryptocurrencies sitting at around $3 trillion[1].
[1]: Reuters, New York. (2025, July 16). A bill to create a legal framework for a form of cryptocurrency tied to traditional currencies failed in the U.S. Senate. Retrieved from link
[2]: Blockchain.News. (2025, August 10). STABLE Act Faces Setbacks in U.S. Senate as Attention Shifts to GENIUS Act. Retrieved from link
[3]: Hill, J. (2025, April 29). House Panel Votes to Advance Stablecoin Bill. Retrieved from link
[4]: Lund, E. (2025, July 16). Stablecoin Regulation: The Story Behind the Failed Senate Vote. Retrieved from link
[5]: Lexington, L. (2025). The Hidden History of the Stable Act and the GENIUS Act: A Deep Dive into the Battle for Stablecoin Regulation. Retrieved from link
- Lawmakers in the Senate failed to pass the Stable Act, a bill designed to regulate stablecoins, despite receiving support from both Republicans and Democrats.
- The creative use of technology in the form of stablecoins, digital currencies engineered for price stability, had potential for impacting investing on a trillion-dollar scale, as evidenced by the $2 billion investment in Binance.
- The failed passage of the Stable Act has left the crypto industry, which had campaigned heavily for stablecoin regulation, hoping for stronger regulations to be enacted to address concerns about foreign stablecoins and anti-money laundering measures.
- Stablecoins, with a combined market value of approximately $241 billion, make up a relatively small portion of the overall $3 trillion cryptocurrency market, with Tether accounting for over half of that value.
