In the U.S., a group of nine Democratic senators who previously supported the GENIUS stablecoin bill proposed by the Republican Party stated that they would not support it in its current form.
They noted that the legislation lacks guarantees for combating money laundering, restrictions for foreign issuers, and national security.
As the popularity of stablecoins continues to grow, it is crucial for Congress to operate in a bipartisan manner, wrote the senators. We recognize that the lack of regulation leaves consumers unprotected and vulnerable to predatory practices.
The bill, officially known as the GENIUS Act, is sponsored by Senator Bill Hagerty, and its goal is to establish the first federal framework for stablecoin payments. According to the document, stablecoins must be backed by liquid assets, and their issuers should not engage in lending.
In March, the bill was passed by the Senate Banking Committee with bipartisan support, but now Democrats are withholding their support.
Their decision may be related to growing Democratic concerns about Trump-related crypto companies and potential conflicts of interest.
We have a choice, wrote Hagerty. Move forward and make any necessary bipartisan changes or show that the legislation on digital assets and cryptocurrencies remains solely a Republican issue.
At least seven Democratic votes will be needed to further advance the bill.