Thune to plow ahead with stablecoin bill despite Democratic opposition – Washington Examiner
Senator John Thune (R-SD) is moving forward with the GENIUS Act, a bipartisan stablecoin legislation, despite opposition from a group of nine crypto-friendly Democrats who are seeking stronger provisions regarding money laundering adn accountability measures. A procedural vote is expected later this week, but the late demands could jeopardize the bill’s passage in the Senate, as it requires support from at least seven Democrats to overcome a filibuster. Notably, divisions related to former President Donald Trump’s involvement in cryptocurrency have added complexity to the discussions, as some Democrats like Senator Chuck Schumer (D-NY) have expressed hesitation. This legislation represents a significant step for the cryptocurrency industry, which has invested heavily in the upcoming elections to influence favorable regulations. Failure to pass the bill woudl be a setback for both the industry and Trump’s aspirations for bipartisan support.
Thune to plow ahead with stablecoin bill despite Democratic opposition
Republicans will bring bipartisan stablecoin legislation to the Senate floor despite last-minute opposition from a bloc of crypto-friendly Democrats.
The Senate will hold a procedural vote later this week on the GENIUS Act, a spokesperson for Majority Leader John Thune (R-SD) confirmed on Monday, after nine Democrats demanded “additional improvements” to the bill on Saturday.
The legislation, which sets rules of the road for digital coins, is the product of months of negotiations and had been expected to sail through the Senate. But the late demand by Democrats has thrown into limbo whether the measure has the seven Democratic votes needed to clear the filibuster.
All nine Democrats now opposing the bill are relatively friendly to the crypto industry, while four had supported an earlier version when it passed the Banking Committee in March.
In a joint statement, the Democrats said the legislation needed “stronger provisions” to combat money laundering, protect the U.S. financial system, and ensure “accountability for those who don’t meet the act’s requirements.”
Sen. Kirsten Gillibrand (D-NY), the lead Democratic sponsor of the stablecoin bill, has pushed for its adoption, negotiating further amendments from the Republicans meant to satisfy her colleagues.
But the bill is being brought to the floor amid divisions over President Donald Trump and his family’s foray into cryptocurrency. Last week, a UAE-backed fund agreed to use the Trump stablecoin “USD1” for a $2 billion transaction, stoking allegations that the president is using his office for financial gain.
Those divisions played out last week when senators vented their concerns about the legislation at a closed-door caucus lunch. At that meeting, Senate Minority Leader Chuck Schumer (D-NY) urged Democrats not to commit to the legislation, according to Axios.
Failure to pass the bill would amount to a major setback for the cryptocurrency industry, which poured tens of millions into the 2024 elections in hopes of securing regulations favorable to digital coins.
It would also deny Trump a rare bipartisan victory. Republicans are trying to pass most other parts of his agenda through reconciliation, a party-line process that does not require Democratic votes.
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Sen. Dick Durbin (D-IL), the No. 2 Senate Democrat, told the Washington Examiner on Monday that he was unlikely to whip Democrats either way on the stablecoin legislation, but that he was “inclined not to” support it himself.
Beyond Gillibrand, Republicans could receive Democratic support from Sen. Angela Alsobrooks (D-MD), another bill co-sponsor. Neither she nor Gillibrand signed on to the Saturday statement.
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