Nikolas Sargeant
Republicans are moving forward with a Thursday vote on the GENIUS Act stablecoin framework despite Senate Democrats withdrawing their crucial support, according to Monday reporting from The Hill. The legislation would establish federal oversight for payment-focused stablecoins and create standards promoting safety and transparency in digital asset markets.
GOP leaders had argued that clear regulatory guidelines would foster innovation and help maintain America's competitive edge in the cryptocurrency sector. However, their decision to use Senate Majority Leader John Thune's fast-track process—bypassing further committee revisions—has triggered significant Democratic backlash.
Democrats Cite National Security and Regulatory Concerns
Nine Democratic senators who previously supported the bill released a statement Saturday announcing they could no longer vote for the current version. "We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made," they stated, highlighting weak anti-money-laundering provisions and insufficient safeguards against foreign interference as primary concerns.
Senator Ruben Gallego expressed frustration on X, noting Democrats "were trying to negotiate with the Republicans for weeks" but the floor text "back-pedaled on a lot of the progress we made." Many Democratic lawmakers complained they first saw the final text only when it became public.
Trump Family Crypto Ventures Raise Additional Questions
Critics have also pointed to former President Trump's recent cryptocurrency ventures as reason for deliberation. World Liberty Financial's proposed $2 billion transaction with Binance—featuring its own stablecoin—prompted Senator Elizabeth Warren to call for delay, warning that "the Trump family stablecoin surged to seventh largest in the world because of a shady crypto deal with the United Arab Emirates."
House Democrats have scheduled separate hearings to examine these activities, arguing that rushing regulatory framework without addressing potential conflicts could enable corruption. As bipartisan support collapses, the GENIUS Act faces uncertain prospects despite earlier White House hopes to secure reforms by August.
