US Senate Democrats are getting flak after they helped move stablecoin legislation ahead

US Senate Democrats are getting flak after they helped move stablecoin legislation ahead for discussion on the Senate floor.

US Senate Democrats are getting flak from both sides for helping move stablecoin legislation a step closer to discussion on the Senate floor.

On May 19, 16 Democratic senators broke from the party line to pass a motion to invoke cloture on the bill. This will now set the bill up for debate on the Senate floor.

Some of the same Democrats had pulled their support for the bill in early May, amid concerns over President Donald Trump’s cryptocurrency dealings.

The bill’s opponents hailed lawmakers’ refusal to support it but were soon taken aback when the senators reversed their position. The lightly amended legislation did not contain any provisions regarding World Liberty Financial, the Trump family’s crypto venture.

Some activists have since said that the Democrats supporting the bill should be ousted in the upcoming Democratic primaries in 2026. This move highlights a growing rift in the Democratic Party over cryptocurrencies.

Lawmakers’ approach to crypto shows split in party

On May 19, moderate Democratic Senator Mark Warner announced he would be pivoting to support the bill, adding that it was “not perfect, but it’s far better than the status quo.”

Placing corruption concerns to one side, Warner stated, “Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight … But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.”

He added that it would be better for the U.S. to move forward on imperfect stablecoin legislation than to fall behind other jurisdictions.

Democratic Senator Kirsten Gillibrand, one of the bill’s sponsors, also pushed aside Trump corruption concerns, saying they should be addressed separately.

“A lot of what President Trump is engaged in is already illegal,” Gillibrand said. She added that she didn’t want the president’s scandals to “distract us from the important goal of having a clear regulatory structure in the United States that can onshore this industry.”

However, progressive Democrats disagreed. Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee and a vocal critic of the crypto industry, reportedly got into a heated argument with Gillibrand on the Senate floor, according to Politico.

Arguing on the Senate floor ahead of the vote, Warren stated, “A bill that turbocharges the stablecoin market, while facilitating the President’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all.”

Democrats opposing the bill aren’t giving up either. Senator Michael Bennet of Colorado, who voted against the GENIUS Act, immediately introduced another bill, jokingly named “the STABLE GENIUS Act,” combining the names of the bills in the Senate and House of Representatives.

The bill would prevent the president, vice-president and members of Congress from “issuing or endorsing digital assets” and require them to place any assets they hold in a blind trust while in office.

While the bill has little chance of passing — numerous acts that would limit members of Congress’ financial activities have fizzled out — it shows the Democrats are split on how they should provide opposition.

Democratic activists blast GENIUS supporters

The progressive and activist wings of the Democratic party have been delivering scathing criticisms of Congressional leadership for making what they deem to be bad compromises with the Republicans on measures that should be deal breakers.

In March, activists were incensed when Senator Chuck Schumer, a Democrat from New York and minority leader in the Senate, voted with the Republicans on a continuing resolution for government funding. One progressive observer on the Still Processing podcast accused him of purposely giving up leverage and weakening the Democratic position.

Then, in April, disagreements over how Democrats should fight Trump’s mass deportations further deepened the rift.

Now, crypto has become another wedge between the activist wing, which provides crucial voter activation during elections, and centrists in Congress.

Ezra Levin, co-founder and co-executive director of progressive activist organization Indivisible, wrote on the new social media platform BlueSky:

"It’s almost unbelievable but the House just voted 371-0 to pass the bipartisan bill to ban members of Congress from trading stocks. But Senate Democrats are planning to vote down the bill because they don’t want to be subject to the same rules as the House.

This is a perfect example of why we need to primary out these corrupt career politicians and elect a new generation of leaders who will actually drain the swamp."