Investing.com-- Bitcoin gained on Tuesday as the U.S. Senate advanced a key stablecoin regulation bill, signaling increased institutional support for the cryptocurrency sector, while investors awaited a crucial vote on President Donald Trump’s proposed tax cuts.

The world’s largest cryptocurrency rose 0.8% to $106,180.90 as of 02:04 ET (06:04 GMT), remaining near a four-month high reached on Sunday.

Bitcoin jumped over $107,000 on Sunday with gains of around $2,500 in under an hour in late Sunday trading, likely driven by thin weekend liquidity and algorithmic buying at key technical levels.

Stablecoin bill clears Senate hurdle, floor vote looms

On Monday night, the Senate voted 66-32 to move forward with the GENIUS Act, a bill aimed at establishing a federal framework for stablecoin regulation.

The legislation had previously stalled due to Democratic opposition but gained momentum after concerns were addressed.

The bill’s progress is seen as a positive development for the crypto industry, which has been seeking clearer regulatory guidelines.

The bill is likely set for a Senate floor vote later this week, clearing which it will be sent to President Donald Trump’s office for approval.

Bitcoin’s recent performance has been bolstered by expectations of favorable regulatory developments and increased adoption.

Critics warn that the bill may worsen the U.S. fiscal deficit and reduce federal revenue, especially as the deficit is already at historically high levels.

This comes after the global ratings agency Moody’s downgraded its investment grade rating on the U.S. by a notch over the country’s growing $36 trillion debt.

Crypto price today: altcoins rise; Ethereum leads gains

Most altcoins advanced on Tuesday, tracking Bitcoin’s rise.

World no.2 crypto Ethereum jumped nearly 8% to $2,562.73.

World no. 3 crypto XRP rose 2.1% to $2.3795.

Solana climbed 4%, while Cardano added 4.5%, and Polygon advanced 3%.

Among meme tokens, Dogecoin jumped 5%, while $TRUMP gained 3.4%.