The U.S. Senate approves a bill on stablecoin regulation, a significant step on the path to crypto legislation and management of digital currency markets.

The U.S. Senate approved the GENIUS Act on Tuesday, a significant victory in the digital asset arena that provides the first-ever federal structure of guidelines and regulations for stablecoins, cryptocurrency tokens connected to the U.S. dollar. The bill was passed unanimously on both sides of the house with 68-30 and will now be sent to the House led by the Republican Party away from President Donald Trump.

Hailed as the turning point in crypto regulation, the bill also requires a stablecoin to maintain the liquid asset reserves, which can be U.S. dollars, U.S. Treasury bills, or any other instrument approved by the SEC. It necessitates that issuers report the releases of assets every month.

Crypto proponents, who have contributed more than $119 million to candidates supportive of crypto, have long said that legal certainty is needed as regulation is the fastest way to achieving mainstream adoption.

Nevertheless, the bill has also caused some political heat particularly concerning the personal crypto projects of Trump, such as the $TRUMP meme coin and World Liberty Financial. Many were concerned about possible conflicts of interest and lack of anti-money laundering protections including Senator Elizabeth Warren.

In the event it becomes law in the House, the initiative may redefine the place of crypto in U.S. financial policy