A dramatic turn of events took place that may delay one of the most important digital asset bills

This reversal comes just days before the Senate is set to vote on the measure, casting uncertainty over the bill's fate.

A dramatic turn of events took place that may delay one of the most important digital asset bills in recent memory. A coalition of nine Senate Democrats has announced their disagreement with the current version of the Republican-led stablecoin bill. This reversal comes just days before the Senate is set to vote on the measure, casting uncertainty over the bill’s fate.

This has resulted in a shaken-up political scenario and U.S. crypto regulations.

🚨 JUST IN: 9 Senate Dems (6 of whom are members of Senate Banking Cmte.) signal new opposition to the GENIUS Act (Senate stablecoin bill).

The group says they are “unable to vote for cloture should the current version of the bill come to the floor.”https://t.co/u7z453L72p

— Ben White (@BenSWhite7) May 3, 2025

This disagreement took place on May 3, 2025, where the bill was spearheaded by Senator Bill Hagerty. He aims to create the first-ever regulatory framework for stablecoins. Stablecoins are digital currencies that are tied to fiat currencies like the U.S. dollar.

While the legislation cleared the Senate Banking Committee in March with some bipartisan backing. Recent statements from Democrats suggest that earlier support has now crumbled. If the bill is not revised significantly.

Democratic Support Wavers

This opposition to the Senate stablecoin bill was led by Sen.Ruben Gallego, who has previously voted for the bill during committee deliberations. It was co-signed by 8 other Senate Democrats: Mark Warner. Lisa Blunt Rochester, Andy Kim, Raphael Warnock, Catherine Cortez Masto, Ben Ray Lujan, John Hickenlooper, and Adam Schiff. Among these nine, four of them have initially supported the bill during its early stages.

Notably, 4 of the signatories (Sens. Rochester, Warner, Kim, and Gallego) previously voted to advance the bill through the Senate Banking Committee in March, but now say they won’t support the bill on the floor without changes.

Their collective message gave a clear indication that they would not be able to vote for cloture unless the bill underwent a major revision and changes. This statement alone could derail the legislation, which requires at least 60 votes in the Senate to overcome a tactical delay.

With only slim Republican margins and increasing Democratic hesitation. Reaching that threshold has suddenly become more complex.

Key Issues Raised

The senators highlighted the need for more robust safeguards in the bill. Their concerns include insufficient anti-money laundering provisions. A lack of strong oversight over foreign stablecoin issuers and the absence of strict enforcement. They also highlighted concerns related to broader national security and the importance of ensuring accountability among stablecoin operators.

They mentioned that there is a need for stronger protections. And they cannot pass and support the bill that leaves the financial system vulnerable. The legislators stressed that they remain open to compromise, noting that they are eager to continue working with colleagues to address the outlined shortcomings.

Trump Family’s Crypto Links Add Pressure

The U.S. crypto regulation atmosphere surrounding digital assets has grown more charged in recent months. Particularly as a member of the Trump family depends on their involvement in the crypto industry. A new stablecoin venture backed by the former president’s son has raised alarms among Democrats. Those who fear potential conflicts of interest and political bias.

While the Republic lawmakers hoped that the recent amendment to the bill was introduced specifically to address the Democratic concerns. These concerns would smooth the path for bipartisan approval; the latest opposition suggests those efforts fall short. Instead, the Democrats now appear poised to use their leverage to extract further concessions.

Notable Absences and GOP Response

Interestingly, two of the Democratic senators who are co-sponsoring the bill, Kirsten Gillibrand and Angela Alsobrooks, did not sign the opposition statement. Their continued support may provide a potential path forward if a new amendment is introduced that can rebuild a bipartisan coalition.

In response, Sen. Hagerty defended the bill and stated its broader vision. “We must advance legislation that enshrines American leadership in the digital asset space and protects the US dollar for centuries to come,” Hagerty said. “That time is now.”

Overall, the next procedural vote on the bill could come as early as next week. Whether Democrats and Republicans can strike a new deal may determine the immediate future of the stablecoin bill and U.S. crypto regulation.