- Senate Democrats have sworn to resist the brilliant law in its current form.
- The lack of consensus can make the path of the Stablecoin Bill forward more difficult.
The fate of the US Senate stabile Bill was thrown in Limbo prior to Thursday’s vote.
Democrats, led by senators Elizabeth Warren and Reuben Gallego, have sworn not to support the bill, the Genius Act, if stronger anti-money laundering practices and other safety provisions are not adopted.
In fact on the May 5, Warren stated That approval of the bill as it would ‘facilitate corruption’, with reference to the recent $ 2B Crypto deal between Trump-Stundered World Liberty Financials (WLFI) and Binance.
“The Trump family Stablecoin rose to the 7th largest in the world because of a shady crypto deal with the VAE. The Senate is not allowed to pass a crypto account this week to facilitate this type of corruption.”
According to a report from the New York Post, the deal was the VAE to get a minority interest in Binance, and the payment was via WLFI’s Stablecoin (USD1).
Republicans’ Hardline on Stablecoin Bill
It is worth pointing out that Democrats and Republicans have supported the genius (leading and establishing national innovation for the US Stablecoins of 2025) Act during the introduction.
Nine other Senate Democrats, however, promised to withdraw support, led by Arizona Senator Reuben Gallego. Some of the senators letter read,
“The bill, as it is currently, still has many problems that must be tackled, including the addition of stronger provisions on anti-wue wages, foreign issues, national security, maintaining the safety of our financial system …”
The explanation went on,
“Although we would like to continue working with our colleagues to tackle these problems, we would not be able to vote for Cloture if the current version of the bill comes to the ground.”
The passage of the bill was expected to be an important milestone for the crypto industry, especially for the fast -growing Stablecoin sector.
After the approval, the Republican Senator Bill Hagerty, who led the legislation, led insisted His colleagues to support the bill. He emphasized the need for two -part cooperation to make the necessary changes.
“We must promote the legislation that captures American leadership in the digital assets space and protects the US dollar for the coming centuries. That time is now.”
It is not surprising, the crypto community beaten The opposition group guided by the Democrat, which influences the banking sector that feels threatened by Stablecoin’s adoption.
Paradigm’s Regulatory Affairs Executive, Justin Slaughter, repeated a similar attitude and stated”
“It is wild for me that many of the Democratic party have broadly tailored itself to banks and even the too big to fail banks, but it happened.”
For his part, Ripple’s Legal Chef, Stuart Alderoty, criticized Warren’s Stablecoin blockade as a ‘cheap political shot’.
In general, stabilecoins have seen with dollars enormous growthLed by Tether’s USDT and Circle’s USDC. The approval of the bill would improve the protection of consumers and the American lead in financial innovation.