The future of the stablecoin bill in the U.S. Senate has become uncertain after an unexpected turn of events. Despite previous bipartisan progress, nine pro-cryptocurrency Democrats, four of whom previously supported the bill, withdrew their support. They expressed concerns about insufficient national security measures, anti-money laundering efforts, and consumer protection. The bill, known as the GENIUS Act, aimed to create the first federal regulatory framework for dollar-pegged stablecoins, which is a priority of Trump’s administration's financial policy.
The refusal of the Democrats, including Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester, and Andy Kim, jeopardizes the passage of the bill, which requires at least seven Democratic votes for approval. Critics, including Senator Elizabeth Warren, emphasize the risks of financing terrorism and circumventing sanctions due to weak regulatory standards. Meanwhile, Republicans, such as Senator Bill Hagerty, insist on the need for clear rules to support innovation and the competitiveness of the dollar.
This division may delay stablecoin regulation, leaving the crypto industry in uncertainty. Further negotiations will be crucial for the fate of the bill and the future of digital assets in the U.S.