Crypto Industry Gains Ground in Washington with Bipartisan Stablecoin Legislation:

The cryptocurrency industry's substantial political investments are yielding legislative returns, as lawmakers in both the House and Senate support new bills to expand stablecoin usage and reduce federal oversight. Stablecoins are digital currencies tied to the US dollar, and both the GENIUS and STABLE Acts aim to create a legal framework for their issuance and use.

Senator Gallego Backs GENIUS Act Amid Crypto-Funded Campaigns

Senator Ruben Gallego of Arizona, who received support from $10 million in crypto-funded campaign ads, broke ranks with Democratic leadership to support the GENIUS Act. The bill would allow companies to issue stablecoins and reduce regulatory constraints, aligning with top priorities of the crypto sector. “It’s clear that digital assets are here to stay,” Gallego said after the Senate Banking Committee moved the bill forward.

Fairshake PAC and Industry Spending Shape Congressional Support

Gallego is among over 50 lawmakers supported by Fairshake and similar super PACs, which spent more than $130 million in the 2024 cycle. These groups, backed by Coinbase, Ripple, and Andreessen Horowitz, helped elect candidates from both parties who support cryptocurrency-friendly policies. The GENIUS Act, now with bipartisan momentum, is set for a Senate vote soon. Meanwhile, the House's STABLE Act passed committee despite Democratic opposition.

SEC Pullback and Executive Support Mark a Turning Point

The legislative push coincides with a federal shift in crypto regulation. The SEC has dropped major lawsuits against platforms like Coinbase and Kraken, and President Trump recently ordered the creation of a national crypto reserve. He praised stablecoins for strengthening the US dollar. Shortly after, Trump-linked World Liberty Financial introduced a stablecoin, USD1, which stands to benefit from the GENIUS Act.

Critics Raise Concerns Over Consumer Risks and Conflicts of Interest

While sponsors of the GENIUS and STABLE Acts argue the bills provide needed rules for stablecoin markets, critics caution that the legislation lacks adequate consumer safeguards. Advocacy groups warn the laws could enable financial crime and instability. “This is a crypto industry wish list,” stated a coalition in a public letter.

Crypto Industry Deepens Influence Through Strategic Appointments

The crypto sector has amplified its lobbying efforts post-election, sending leaders to Capitol Hill and working closely with aligned lawmakers. Gallego, Jim Banks of Indiana, and Bernie Moreno of Ohio — all supported by crypto PACs — now serve on the Senate Banking Committee. In the House, Financial Services Chair French Hill helped move the STABLE Act forward with PAC backing.

Ethical Concerns Over Presidential Ties to Crypto Firms

Representative Maxine Waters criticized the overlap between public policy and private gain, calling out President Trump for allegedly using his office to benefit crypto firms linked to him. “The president should not be profiting from laws passed under his administration,” she said.

Stablecoin Laws Could Redefine Crypto's Role in Finance

If enacted, the GENIUS and STABLE Acts would represent the most significant federal support for digital currencies to date. The push shows that crypto is no longer on the fringes of finance — it’s becoming central to U.S. monetary policy. The focus now turns to how, and by whom, these evolving rules will be shaped.