Bitcoin, Other Cryptos Rise. Why the Senate Stablecoin Bill Is Pushing Prices Higher.
May 20, 2025
Bitcoin and other cryptocurrencies rose after a bill to regulate some cryptocurrencies passed a key hurdle late Monday.
Bitcoin is up 2.2% over the last 24 hours to $105,380, according to CoinDesk data.
The price of the world’s largest digital coin spiked to close to $107,000 Monday evening, around the time senators voted 66-32 to advance the bill. The legislation is aimed at regulating so-called stablecoins—cryptos pegged to a fiat currency, typically the U.S. dollar.
Ether, XRP, and Solana also climbed but, like Bitcoin, gave back some of those gains in the following hours, possibly due to profit-taking. Early Tuesday, they were up between 1.4% and 5.5%, according to CoinDesk.
The bill, or the GENIUS Act, aims to regulate only stablecoins, thereby excluding coins such as Bitcoin, which are volatile in price. Tether and USD Coin are the biggest stablecoins by market value.
The bill would create the first regulatory framework for stablecoins in the U.S. It would require issuers to hold reserves of liquid, safe assets as well as follow anti-money-laundering finance rules, among other provisions.
“The U.S. Senate advancing a stablecoin bill and Coinbase’s S&P 500 inclusion, are reinforcing mainstream acceptance, countering macro pressures from cautious Federal Reserve commentary,” said Joel Kruger, market strategist at LMAX Group, a crypto trading platform.
The bill is seen by many in the sector as a step toward a more crypto-friendly regulatory landscape that could integrate blockchain-based payments into traditional financial system. However, further efforts to effectively govern the sector might prove politically more divisive.
Ira Auerbach at blockchain company Offchain Labs says that, while the whole industry wants regulation, stablecoins require a different legislative approach than assets like memecoins —digital tokens typically inspired by internet memes or trends.
“These are separate issues, and the latter shouldn’t be allowed to impede the former, regardless of who is accused of profiting from speculative asset issuance,” Auerbach said.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
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