Bitcoin Surges to $110,000 as US Senate Advances Key Crypto Bill
Bitcoin has reached a new all-time high, breaching the $110,000 mark for the first time, following the advancement of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the US Senate. The bill, which has received bipartisan support, is expected to aid businesses operating in the crypto space.
The GENIUS Act primarily focuses on regulating stablecoins, a type of cryptocurrency pegged to more predictable assets like the US dollar. It allows big tech companies to issue stablecoins, which is seen as a significant win for many of President Donald Trump’s supporters from the industry. The bill requires issuers to comply with anti-money laundering (AML) and anti-terrorism regulations, as well as privacy requirements under existing banking laws.
Crypto issuers must fully back stablecoins with fiat currency or high-quality liquid assets at a 1:1 ratio and maintain reserves separate from operational funds. These reserves must be publicly disclosed with regular third-party audits. Democrat Senator Mark R. Wright from Virginia, who supported the bill, acknowledged concerns about the Trump family’s use of crypto technologies but emphasized the need for the US to shape blockchain innovation.
However, some Democrat members, including Senator Elizabeth Warren, criticized the legislation. Warren argued that the bill fails to ensure consumer protections, close loopholes for illicit use, and reduce risks to the financial system. She also expressed concerns about potential conflicts of interest for President Trump and his growing cryptocurrency firm.
The GENIUS Act has been amended to require big tech companies to seek approval from a regulatory committee before issuing stablecoins, addressing some concerns about their involvement. Despite this, critics argue that the bill still contains loopholes that could undermine competition, financial stability, and privacy.
The advancement of the GENIUS Act comes as Bitcoin recovers from a brief decline last month due to geopolitical uncertainties following Trump’s tariff-induced tensions with several countries. With the reduction of some of these concerns, particularly after the US signed a trade deal with China, the digital currency has been gaining momentum.
