May 6, 2025 — Washington, D.C.
A group of nine Democratic senators, led by Senator Ruben Gallego, have halted progress on a key stablecoin bill, citing unresolved concerns that they argue must be addressed before moving forward. The delay comes at a critical time, as lawmakers are also trying to push forward broader and more significant crypto market structure reforms.
According to insiders, the stalled legislation could create a bottleneck for the wider regulatory overhaul of digital assets — a move seen as necessary for providing clarity and stability in the growing crypto sector. The reluctance to advance the bill is not merely technical; political motivations appear to be at play.
One major source of tension is the growing connection between former President Donald Trump and the cryptocurrency industry. Reports suggest that Trump has profited significantly from various crypto-related ventures, raising alarm among Democrats that any advancement in regulation might inadvertently benefit his business interests.
“These are not minor concerns,” a Democratic aide said. “We can’t rush legislation that might open the door to more unregulated financial influence — especially when linked to a political figure with such a controversial track record.”
With the stablecoin bill on hold, there is concern that momentum for broader reform could also stall. Lawmakers from both parties have recognized the importance of defining market structure rules for digital assets, but political friction may now stand in the way.
The Biden administration has not yet commented directly on the delay or the Trump-related concerns. However, with the 2024 election cycle still fresh in lawmakers’ minds, crypto policy appears to have become yet another battleground in the ongoing partisan struggle over financial regulation and political influence.