Crypto is on the verge of a major legislative victory in Washington, with the stablecoin bill expected to pass the Senate after years of stagnation.
The push for regulation is gaining bipartisan support, and a key player in the industry’s favor is Democratic Senator Kirsten Gillibrand of New York. Kirsten, who has built a reputation as one of crypto’s biggest allies in Congress, has climbed the ranks of her party and now oversees Democratic election fundraising, giving her more influence than ever to shape financial policy.
The bill, which aims to regulate privately issued stablecoins pegged to the U.S. dollar, has already cleared a critical hurdle in the Senate Banking Committee, where five Democratic senators ignored opposition from Senator Elizabeth Warren and sided with the industry.
Cynthia Lummis, the top Republican advocate for crypto in the Senate and a frequent legislative partner of Kirsten, says this wouldn’t have been possible without her. “Without her, it doesn’t happen,” Cynthia said, pointing to Kirsten’s financial policy expertise and bipartisan alliances as key to breaking the deadlock.
Crypto money floods Washington as industry gains ground
For years, crypto faced opposition from Sherrod Brown, the former chair of the Banking Committee, who blocked industry-friendly bills at every turn. But the industry has fought back, pouring millions of dollars into campaigns and changing the political landscape as we know it.
The biggest example? Brown himself is now at risk of losing his seat in November. Fairshake PAC, a crypto-backed political action committee, has spent $40 million to unseat him and replace him with Bernie Moreno, a Republican blockchain entrepreneur who supports the industry.
Moreno’s not the only one benefiting from crypto’s financial power. Ruben Gallego, a Democratic Senator from Arizona, has also received major backing from the industry.
Both he and Moreno now sit on the Senate Banking Committee, where they helped push the stablecoin bill to the Senate floor. And crypto’s influence is only growing. In January 2025, Fairshake announced it had amassed a $116 million war chest for the upcoming elections, sending a clear message that the industry is here to stay.
Kirsten pushes for stablecoin rules as Warren warns of risks
Kirsten has been vocal about her stance on crypto regulation, arguing that stablecoins need clear rules to avoid another disaster like Sam Bankman-Fried’s FTX collapse.
“If we do nothing, and this industry is left to its own devices, we’ll have more collapses, we’ll have more Sam Bankman-Fried frauds,” she said in her Senate office. She’s been working closely with Tim Scott, the Republican chair of the Banking Committee, and has even partnered with Cynthia to raise funds for pro-crypto candidates.
But not everyone in Congress is on board. Warren, who has positioned herself as crypto’s biggest enemy, continues to push for stronger regulations to protect consumers and the financial system from what she sees as risky digital assets. She’s been trying to block the stablecoin bill, warning that the industry is buying influence in Washington.
“Money is talking very loudly,” said Jeff Hauser, director of the Revolving Door Project, a watchdog group that’s been critical of Kirsten’s pro-crypto stance. “Democrats have been freaked out since crypto flooded money into campaigns last year.”
Kirsten, however, rejects the idea that crypto’s political donations determine votes. “No one should care, you know, which industries are for or against them because of their political giving,” she said. “I don’t think senators respond well to being threatened.”
Meanwhile, major financial players are already betting on stablecoins. Visa, PayPal, and Stripe have all invested in projects involving stablecoins, signaling that the technology is moving into the mainstream.
And the numbers back it up. As of February 2025, the stablecoin supply has hit $214 billion, with 30 million active addresses. The annual transaction volume has reached $35 trillion, making it twice the size of Visa’s payment network. Ethereum, the dominant blockchain for stablecoins, holds a 55% market share.
Kirsten’s stablecoin bill would require one-to-one reserves for all privately issued stablecoins, with oversight from either state or federal regulators. The Federal Reserve would also play a role in ensuring that stablecoins are backed by highly liquid assets like short-term government debt, preventing the kind of bank-run scenario that could crash the market.
“It’s not meant to be a bank account. It’s not meant to have FDIC insurance,” Kirsten said. “It’s a payment system.” That’s the argument she’s making to fellow senators, framing stablecoins as a modern version of traveler’s checks or store gift cards—something that helps move money but doesn’t function as a traditional deposit account.
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