Seven Bills Determine the Universe: The First Federal Stablecoin Framework Bill in the U.S. Faces "Trump Shadow" Sniper

Original Title: US stablecoin bill blindsided by Democratic U-turn over consumer, security concerns

Original author: Kyle Baird

Original source:

Compiled by: Daisy, Mars Finance

Nine Democratic senators now oppose the Republican-led stablecoin bill.

The joint statement pointed out the deficiencies in the anti-money laundering, security, and consumer protection provisions.

The bill’s advancement requires at least seven votes in favor from the Democrats.

Democratic and Republican lawmakers in Washington once showed signs of reaching substantive cooperation on cryptocurrency issues.

However, cracks are appearing in this bipartisan spirit just before the crucial vote.

Nine Democratic senators who previously supported the Republican-led “GENIUS Stablecoin Act” suddenly stated that they would oppose the current version of the bill, causing uncertainty in the legislative process.

According to Politico, the lawmakers pointed out in a joint statement released on Saturday that the bill has regulatory loopholes in anti-money laundering measures, restrictions on foreign issuers, and national security, warning that “without further amendments, they will not be able to vote to end the debate.”

Those who changed their stance include Arizona Senator Ruben Gallego—who just weeks ago voted to support the bill leaving the committee for review. At that time, he called the bill “a step in the right direction,” but also acknowledged there was room for improvement.

Today, Gallego and his colleagues believe that there are still many unresolved issues with the bill. The senators wrote: “As stablecoins become increasingly popular, Congress must advance legislation in a bipartisan manner. We recognize that the lack of regulation will expose consumers to predatory business practices.”

The “GENIUS Act” led by Senator Bill Hagerty aims to establish the first federal-level regulatory framework for payment stablecoins, requiring that stablecoins be fully backed by liquid assets and prohibiting issuers from engaging in lending activities.

The bill was passed with bipartisan support from the Senate Banking Committee in March, but the four Democrats who voted in favor have now withdrawn their support. Concerns within the Democratic Party about Trump-related cryptocurrency businesses and potential conflicts of interest are intensifying.

Hagerty responded by urging colleagues to advance legislation with sincerity: “We are faced with a choice: to improve the bill through bipartisan cooperation, or to let digital asset legislation continue to be seen as a Republican-only issue.”

The bill ultimately needs to secure the support votes of at least seven Democrats.