Trump-backed Stablecoin Bill Advances On Senate Floor; Circle Stock On Retail Watch

The United States Senate advanced a landmark Donald Trump-backed cryptocurrency legislation on Wednesday, before a final passage next week.

The bill, led by Senator Bill Hagerty of Tennessee, aims to create a regulatory framework for the stablecoin digital tokens whose prices are tied to the U.S. dollar.

According to a Politico report, the Senate voted 68-30 in favor of a substitute amendment that includes several changes to the original bill Republicans agreed to last month to win support from Democrats to pass the legislation.

Hagerty reportedly said on the Senate floor that the bill “takes a common-sense, bipartisan approach to regulating stablecoins.”

Trump and his aides, including Treasury Secretary Scott Bessent, have backed the bill because it will increase demand for U.S. dollars and treasuries. The legislation mandates that stablecoin issuers hold dollar-for-dollar reserves of assets like short-term federal bonds and other similar financial instruments.

The cryptocurrency industry heavily backed Trump in the 2024 election. Republicans also aim to introduce a broader digital assets governing legislation, which the House Financial Services and Agriculture committees advanced a day earlier, despite Democratic calls to curb Trump’s crypto profits.

According to a Reuters report, Standard Chartered has estimated that the stablecoin market, currently valued at approximately $247 billion, could grow to $2 trillion by 2028 if relevant legislation were to pass.

Senator Elizabeth Warren reportedly criticized the stablecoin legislation, saying it “is riddled with loopholes and contains weak safeguards for consumers, national security, and financial stability.”

According to the Politico report, unless there are further amendment deals, the Senate could vote on the bill's final passage as soon as Monday.

Stablecoin issuer Circle, which controls 29% of the market, has more than tripled in market value since its debut earlier this month.

Also See: Boost For Oklo, NuScale? World Bank Lifts 12-Year Ban On Nuclear Support To Tackle 'Complex Challenge' Of Energy Demand

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