The US crypto market is under pressure as the Senate stalls the stablecoin bill, officially known as the GENIUS Act. This bipartisan legislation aimed to create the first federal regulatory framework for dollar-pegged stablecoins, requiring issuers to back them 1:1 with assets like cash or Treasuries and imposing anti-money laundering (AML) rules.
However, nine Senate Democrats, including Ruben Gallego and Mark Warner, have withdrawn support, threatening to filibuster the bill unless significant amendments are made. Their concerns focus on:
- Insufficient AML provisions
- Risks from foreign stablecoin issuers and national security
- Accountability and enforcement against noncompliant actors
- Potential conflicts of interest linked to former President Trump's crypto ties
This Democratic opposition has created a deadlock, delaying the bill's progress and potentially impacting broader crypto market structure legislation. Negotiations are ongoing, with some Democrats open to compromise, but the bill's future remains uncertain.
The stalled legislation has led to a slight dip in cryptocurrency prices amid regulatory uncertainty. If passed, the bill could legitimize stablecoins, encourage institutional adoption, and strengthen the US dollar's dominance in digital finance.
