Bitcoin Rises as Stablecoin Bill Advances in Senate, Market Eyes Trump Tax Vote

Bitcoin extended its upward momentum on Tuesday as the U.S. Senate cleared a major procedural hurdle for the long-anticipated GENIUS Act—a bill that would establish a federal framework for stablecoin regulation. The move marks a significant step toward broader institutional support and regulatory clarity for the crypto sector, further fueling optimism in the market.

As of 02:04 ET (06:04 GMT), Bitcoin gained 0.8% to trade at $106,180.90, holding near the four-month high it reached on Sunday. The token spiked over $107,000 in weekend trading, driven by thin liquidity and automated buying at key technical levels.

GENIUS Act Clears Senate Hurdle

The GENIUS Act passed a key vote in the U.S. Senate late Monday, with a 66-32 majority allowing the legislation to proceed to a floor vote expected later this week. The bill had previously faced resistance from Democratic lawmakers, but bipartisan amendments helped push it forward. If approved by the full Senate, it will head to President Donald Trump’s desk for final approval.

The bill aims to provide clear federal oversight for stablecoin issuers, a long-standing concern for both the crypto industry and regulators. Market participants have welcomed the progress as a sign that Washington may be ready to take a more structured and supportive approach to digital assets.

Crypto analysts noted that a comprehensive regulatory framework could pave the way for increased institutional investment in digital currencies, potentially accelerating adoption across the financial sector.

Tax Cut Vote Adds to Volatility Watch

Traders are also closely monitoring political developments in Washington, where the House of Representatives is set to vote on President Trump’s proposed tax cuts later today. While the plan is seen as pro-growth by some, critics have warned that it could deepen the U.S. fiscal deficit—already a concern after Moody’s downgraded the country’s sovereign credit rating last week.

The outcome of the vote could influence broader market sentiment, including investor appetite for risk assets like cryptocurrencies.

Crypto Rally Broadens: Ethereum Leads Altcoin Gains

Altcoins mirrored Bitcoin’s strength, with several major tokens posting sharp gains. Ethereum surged nearly 8% to $2,562.73, benefiting from renewed risk appetite and improving sentiment across digital assets.

XRP rose 2.1% to $2.3795, while Solana and Cardano gained 4% and 4.5%, respectively. Polygon added 3%. Among meme tokens, Dogecoin jumped 5%, while the Trump-themed token $TRUMP advanced 3.4%.

With improving regulatory momentum, easing trade tensions, and growing optimism over fiscal and monetary policy direction, digital assets appear poised to extend gains—though market participants remain sensitive to political and macroeconomic developments in the days ahead.