The long-anticipated stablecoin bill from both parties recently faced significant changes. According to (Politico), nine Democratic senators in the U.S. Senate announced over the weekend that they would not support the current version of the stablecoin bill, including four members who voted in favor during the committee vote last month.

Democratic lawmakers change their stance at the last minute.

According to reports, Senate Minority Leader Chuck Schumer privately urged Democratic colleagues during a closed-door meeting last Thursday not to support the bill temporarily, reasoning that it would leverage more concessions from the Republicans. Chuck Schumer expressed concerns about the handling of Tether and other offshore stablecoin companies in the bill.

Senator Elizabeth Warren, who has long been critical of cryptocurrencies, also expressed concerns at the meeting, pointing out that in the context of Trump and his family's recent active involvement in the cryptocurrency business and potential conflicts of interest, it is 'not the right time' to pass the bill. Sources revealed that this 'tense' meeting was not originally intended to discuss cryptocurrency issues, but political controversies surrounding the cryptocurrency industry unexpectedly became the focus.

In response to external doubts about changes in stance, Arizona Democratic Senator Ruben Gallego clarified on X (formerly Twitter): 'This is not a capricious reversal.' He stated that the version of the bill submitted for Senate vote 'backtracked on multiple previous advancements and did not include our other proposed improvements.'

This isn’t some reversal out of nowhere by Dems. The fact of the matter is, Dems, including me and my team, were trying to negotiate with the Republicans for weeks. The bill that was introduced for floor consideration back-pedaled on a lot of the progress we made and did not… https://t.co/hq5HxtEmcx

— Senator Ruben Gallego (@SenRubenGallego) May 4, 2025

Nevertheless, Ruben Gallego stated that there is still an opportunity for both sides to renegotiate: 'We will not be forced to accept this version. I look forward to continuing efforts to make the bill better.'

(GENIUS Act)

The stablecoin bill named (GENIUS Act) (Guiding and Establishing National Innovation for US Stablecoins) has received support from the cryptocurrency industry and is seen as a milestone step towards regulatory clarity. The bill requires stablecoin issuers to comply with the following regulations:

  • 100% Reserve Backing: Stablecoins must be fully backed by U.S. dollars and short-term U.S. Treasury securities (or other highly liquid assets).

  • Monthly Disclosure of Reserves: Increase transparency.

  • Annual Audit: Issuers with a market capitalization exceeding $50 billion must undergo an annual audit.

The Democratic Party is currently pushing to amend the draft content to add more national security, anti-money laundering (AML), and protections related to foreign issuers in the bill, as well as accountability measures for non-compliant actors and other related provisions.

Trump family's involvement in cryptocurrency investments exacerbates bipartisan divisions.

Insiders pointed out that there are also worries within the Democratic Party about the Trump family's active involvement in the cryptocurrency market. The Trump-supported World Liberty Financial (WLFI) has launched a USD stablecoin and established deep cooperation with the world's largest exchange, Binance. Democrats are concerned that this could lead to the bill being used as a political bargaining chip by the Republicans, further undermining bipartisan consensus.

Nonetheless, bipartisan lawmakers generally express that they still hope to revise the bill's content in the coming weeks and restore the negotiation process. However, as the midterm elections in November 2026 approach, if bipartisan divisions continue to widen, the bill may struggle to complete the legislative process as scheduled.

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