US Senate Democrats Threaten to Block Republican-Led Stablecoin Bill

A group of US Senate Democrats known for supporting the crypto industry have said they would oppose a Republican-led stablecoin bill

A group of US Senate Democrats known for their support of the crypto industry would oppose a Republican-led stablecoin bill if it moves forward in its current form, threatening to stall the legislation that could establish the first US regulatory framework for stablecoins, according to a May 3 report by Politico.

Nine Democrats said in a joint statement that the bill “still has numerous issues that must be addressed.” They would not support a procedural vote to advance the legislation unless changes are made.

Among the signatories were Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim — all of whom had previously backed the bill when it passed through the Senate Banking Committee in March.

The bill, introduced by Senator Bill Hagerty, is formally known as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. It is expected to come up for a vote next week.

The legislation has been touted by the crypto industry as a major step toward regulatory clarity andoperability.

However, the Democrats’ about-face signals growing uneasiness within the party over the bill, despite revisions that were made after its committee approval to try to address Democratic concerns.

The lawmakers called for stronger safeguards related to Anti-Money Launderning, national security, foreign issuers, and accountability measures for noncompliant actors.

“While we appreciate the efforts to date to move this legislation quickly, we believe that more work needs to be done before we can support advancing the bill on the Senate floor,” the senators said.

“We are eager to continue working with our colleagues to address these issues and ultimately shape legislation that will foster responsible innovation in the digital asset ecosystem.”

The statement was also signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.

Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent from the list, who co-sponsored the bill alongside Hagerty.

Despite their objections, the Democratic senators highlighted their commitment to shaping responsible crypto regulation.