Stablecoin bill failed in Senate with a 48–49 vote, missing the 60-vote threshold.
Democrats opposed the bill over links to Trump’s family and foreign deals.
Lawmakers cited missing anti-money laundering provisions and oversight gaps.
A suggested bipartisan bill to regulate stablecoins in the U.S. stalled in the Senate on Thursday. The legislation fell short of the required 60 votes, ending with a final tally of 48 in favor and 49 opposed. The bill, which the Senate Banking Committee previously supported, would have been the first major federal framework for stablecoins, which are digital assets reinforced by currencies such as the U.S. dollar.
Concerns Over Trump-Linked Crypto Firm Intensify Resistance
According to a report by the New York Times, the bill’s progress was disrupted after a firm affiliated with President Trump’s family, World Liberty Financial, announced plans to issue a stablecoin.
Senate Democrats expressed unease following reports that the firm secured a $2 billion deposit agreement with an Emirati venture fund backed by Abu Dhabi’s government. Lawmakers questioned whether the bill’s passage would indirectly benefit President Trump or his associates.
Several Democrats, including those initially in support, withdrew backing due to the firm’s involvement and its international ties. The emerging controversy placed added pressure on party members already cautious about legislation tied to cryptocurrency oversight.
Democrats Cite Security and Oversight Issues Within the Proposal
Aside from the Trump connection, Democratic lawmakers voiced concerns about gaps in the legislation. Some said the bill did not include sufficient measures to counter money laundering or restrict access for actors banned from traditional financial systems. These issues raised questions about enforcement and the bill’s potential implications for broader market integrity.
The legislation initially gained momentum after passing out of the Senate Banking Committee in March. Bipartisan supporters anticipated delivering the measure to President Trump’s desk by summer. However, that timeline faltered as opposition mounted in recent weeks.
Appeals for Delay Rejected as Procedural Vote Fails
Senator Ruben Gallego of Arizona, a Democrat subsidizing the bill, urged Republicans to delay the vote until Monday. He cited the bill’s scope and the need for more time to address unresolved concerns.
Despite Gallego’s appeal, Republican leaders insisted on proceeding with the scheduled vote. They argued that further amendments could be introduced during floor debate. Senator John Thune of South Dakota, the Republican majority leader, said Democrats were turning their demands late in the process. He changed his vote to “no” in order to preserve the ability to reintroduce the bill later. Senators Rand Paul and Josh Hawley joined Democrats in voting against advancing the measure. Hawley cited a lack of restrictions on Big Tech’s involvement in crypto as his reason.