36598112927Today, May 5, 2025, the U.S. bill known as the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) faced a significant setback in the U.S. Senate. Nine Democratic senators, who previously supported the proposal, withdrew their support, citing concerns over the lack of robust measures against money laundering, national security risks, and conflicts of interest related to the Trump family's activities in the cryptocurrency sector.

Key points of the deadlock:

Conflicts of interest: The company World Liberty Financial, partially controlled by the Trump family, is involved in a deal worth $292,265,492,412 with the UAE firm MGX, using the stablecoin USD1. This deal raised concerns about potential direct financial benefits for former President Donald Trump and his family.

Partisan divide: Although the bill was initially bipartisan, the recent withdrawal of support by Democrats highlighted internal divisions within the party, especially among progressives like Senator Elizabeth Warren, who expressed concerns about possible fraud and corruption in the cryptocurrency space.

Legislative impact: The stalemate of the GENIUS Act may delay other important legislation related to the structure of the cryptocurrency market in the U.S., affecting regulatory clarity for stablecoin issuers like USDT, USDC, and DAI.

Current situation:

Despite the tensions, Republicans, led by Senator Bill Hagerty, continue to seek support to advance the bill. Meanwhile, groups in the cryptocurrency sector are pushing for clear and effective regulation to ensure the integrity of the financial system and protect consumers.