Genius law of the stablecoins crashes into the Senate

The project, known as the Genius Law (Guiding and Establishment National Innovation for Us Stablcoins Act), was blocked today in the Senate, where Democratic legislators argued that it lacked sufficient measures to prevent corruption, especially in relation to the commercial interests of President Donald Trump in digital assets.

The vote, which ended 48 to 49, marked A significant setback for the cryptocurrency industry that he was looking for a federal regulatory framework for the stablecoins, as reported by the journalist Eleanor Terrent.

The legislation would have regulated the transmitters of Stablecoins and the assets that support these digital currencies, consolidating the legitimacy of the industry within the US financial system. However, the Democratic opposition, backed by Republican senators Rand Paul (Kentucky) and Josh Hawley (Missouri), stopped his advance.

Senator Elizabeth Warren.

“Corruption opportunities are huge,” said Warren. «A Trump’s business partner has been imprisoned and seeks a pardon. Countries that want tariff reductions could come with it through treatment in Stablecoins ». Warren also criticized the lack of restrictions in the Genius law to prevent the president from looked with digital assets during his mandate.

Despite the initial support of a group of pro-descriptomoned democrats, such as senators Mark Warner (Virginia) and Rubén Gallego (Arizona), The legislation lost support After revelations on Trump’s financial benefits and his family, which could amount to billions through their company World Liberty Financial.

The Democrats They tried to negotiate until the last moment to include stricter measuressuch as prohibiting the president from benefiting from cryptoactive, but did not reach an agreement with the Republicans.

The bloc of the genius law reflects the deep divisions in the Senate on the role of cryptocurrencies in the economy. While the industry seeks to establish itself as a legitimate pillar of the financial system, accusations of conflicts of interest and corruption have intensified scrutiny.

Meanwhile, without a clear regulatory framework, ambiguity persists on the legality and future of cryptocurrencies in the US.