USA: Democrats stop Stablcoins law in the Senate

By Canuto

The bill to regulate the Senate’s stable faces internal obstacles amid partisan struggles by Democratic politicians.

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• The opposition of Democratic senators puts at risk the republican proposal to regulate Stablecoins.
• Trump’s influence and lack of consensus generate political frictions in Congress.
• The differences revolve around issues such as money laundering and financial protection.
• Some have also indicated the interests of the Trump family project with the sector.

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The United States Senate is in a stage of high legislative voltage on behalf of one of the most sensitive issues of the moment: cryptocurrencies; specifically, the regulation of Stablecoins. A proposal of law promoted by Republican Senator Bill Hagerty has been questioned after several Democrats demonstrated against their revised version.

The legislation, known as the “Genius Law”, seeks to establish a federal regulatory framework for digital tokens backed by the US dollar, better known as Stablecoins. This advance would be the first of its kind in the country and, if approved, it would mark a turning point for the crypto industry on American soil.

The legislation of Stablecoins –which has a separate analogue effort in the House of Representatives– It has been indicated as one of President Donald Trump’s priorities for his criptomonetic political agenda in 2025.

A fractured bipartisan coalition

Although the project had achieved bipartisan support in previous instances, last Saturday Nine Democratic senators, including some who previously supported him in committee, announced that they will not support the new version of the text.

The trigger, according to advisors and lobbyists consulted under anonymity, were the changes introduced by Republicans in their attempt to accelerate a plenary vote before the end of the month.

The statement published by the group said that the current version of the project has “numerous problems that must be addressed“, As reported The Block. In particular, he points out the need for “Add stricted provisions on money laundering, foreign emitters, national security” and “Security preservation”.

According to critics, the adjustments weaken the key provisions related to the protection of the financial system and the strict accountability controls for those who do not meet the requirements of the law are necessary.

The Democratic Senator Rubén Gallego, who led the Joint Declaration of Saturday, said in the social network X that his team tried to negotiate for weeks without success. “They seem to accept this project without contributing”, He wrote, noting that the new text goes back to previously agreed advances.

Crypt as a political battlefield

The dispute reflects the growing weight of cryptocurrencies in American politics. After Trump’s return to the center of the political scene, and the rise of crypto financing in electoral campaigns, the pressure to define clear rules has intensified.

However, the Trump family link with Crypto businesses has complicated the panorama. In a closed door, the leader of the Democratic minority in the Senate, Chuck Schumer, urged his bench not to compromise his support yet. Schumer expressed doubts about how the law would treat international actors such as TetherIssuer of the Major Stablecoin of the world.

The plans of an agreement of USD $ 2 billion between a fund backed by Abu Dhabi and Binancewhich would use the Stablecoin launched by the project linked to the Trump family for the transaction.

Divisions within the Democratic Party itself

Despite the rejection manifested by several senators, other Democratic members continue to support the project. Senator Kirsten Gillibrand, co -author of the legislation, said that the negotiated changes improve the proposal and are a step towards the responsible regulation of the sector.

His spokesman, Evan Lukaske, declared that “The best way to deal with concerns about the crypto interests of the Trump family is precisely establishing clear rules, not maintaining the legal vacuum”

Gillibrand is part of a small group of pro-described Democrats that have promoted similar initiatives in the past. The project, Genius led by Hagerty, managed to advance in the Senate Banking Committee in March with the support of five Democrats, despite the opposition of figures such as Elizabeth Warren.

Four of those senators – Mark Warner, Lisa Blunt Rochester, Andy Kim and Gallego himself – were publicly unmotive of the current version and warned that they will not support the debate closing motion if it is presented to the plenary without substantial modifications.

An uncertain future for the regulation of stablcoins

Gallego stressed that the position of his group was not an improvised change, but an answer to a draft they consider insufficient. “We are committed to continuing to work to improve this project”, He wrote on social networks.

From the Republican bench, Senator Hagerty reaffirmed the importance of the initiative. “We must advance in legislation that consecrates US leadership in digital assets and protects the dollar for generations”, He also wrote in X.

The senator insisted that it is time to act: “We can advance in a bipartisan way or demonstrate that crypto legislation remains a only republican cause”

The destination of the project is now in the hands of new negotiations and, ultimately, of a Senate who still does not achieve consensus on how the country’s digital financial future should be.

Trump has previously said that he hopes to have legislation on his desk to regulate the Stablecoins In August. For this to happen, there must be a consensus first about each project of the cameras, and then both efforts of the Senate and the representatives must be coupled in one only for a broader discussion in Congress.

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Article was written by an AI content editor and reviewed by a human editor.

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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