#TrumpVsMusk What are stablecoins? What you need to know about the "stable cryptocurrencies" being debated in the U.S. Congress.

By John Towfighi

4 min read

10:05 ET (14:05 GMT) June 5, 2025

What you need to know about the Trump family's plan to sell a ...

02:31

CNN

—

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 English, 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. They were initially created so that cryptocurrency investors could store their money, but 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 experienced a significant resurgence under the second term of President Donald Trump.

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

CNN 1019426 - Will cryptocurrency displace traditional banking?

RELATED ARTICLE

OPINION | New gold: how and why the second generation of cryptocurrencies could become the new standard of the global economy

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