What are stablecoins? What you need to know about the "stable cryptocurrencies" being debated in the U.S. Congress. Stablecoins are about to become commonplace, analysts say, as a historic regulatory bill moves forward in Congress.

The Senate is deliberating on the GENIUS Act, which would establish a framework to regulate stablecoins or, in Spanish, stable cryptocurrencies. The bill overcame a significant procedural hurdle in the Senate last week after initial resistance from some Democrats. Stablecoins are a type of crypto asset linked to the value of another currency, such as the U.S. dollar or gold. Initially created for cryptocurrency investors to store their money, they have gained popularity in recent years due to their use in digital payments.

The historic bill would boost the legitimacy of the cryptocurrency industry and is another example of how virtual currencies have seen a significant resurgence under President Donald Trump's second term.

Cryptocurrency advocates have welcomed the focus on advancing stablecoin regulation. However, critics have pointed out the Trump family's ties to the cryptocurrency industry: for example, World Liberty Financial, a company linked to that family, has issued its own stablecoin.

"Stable cryptocurrencies seem to have arrived to stay," analysts at JPMorgan Chase stated in an April note. "A few years ago, we probably would have debated the truth of that statement. Today we do not."