Stalled US stablecoin legislation will pass in the coming weeks, Digital Chamber CEO Cody Carbone says

The stalling of key stablecoin legislation in the United States Senate was a minor setback, and the bill will pass in the coming weeks, said Cody Carbone, CEO of Digital Chamber

The stalling of key stablecoin legislation in the U.S. Senate is a minor setback, and the bill will pass in the coming weeks, said Cody Carbone, CEO of Digital Chamber.

Speaking to Cointelegraph at Consensus 2025, Carbone argued it is in the best interests of the U.S. to pass comprehensive stablecoin regulations to protect U.S. dollar hegemony in global markets, which has bipartisan appeal and support.

The Guiding and Establishing National Innovation in U.S. Stablecoins of 2025, or GENIUS Act, is seen as a critical piece of legislation. Failing to pass comprehensive regulatory reform before the midterm elections in 2026 could mean a reversal in the positive regulatory environment and a downturn in the crypto markets.

“Negotiations have continued, and so I am still very optimistic,” Carbone said. “This bill is going to pass the Senate in the next few weeks.”

The act failed to pass a procedural vote in the Senate on May 8 after several Democratic lawmakers withdrew support for the bill, citing U.S. President Donald Trump's involvement in crypto as a potential cause for ethics concerns and the primary driver for backpedaling support for the bill at the last minute.

Coinbase chief legal officer Paul Grewal likewise said that Trump's crypto ties complicate the regulatory process, as lawmakers continue to scrutinize his activities in the memecoin market, decentralized finance and the non-fungible token (NFT) sector.

Republican Senator Tim Scott fired back against the concerns voiced by Democratic policymakers, attributing the failure to partisan politics and an attempt by Democrats to prevent Trump from achieving the administration's digital asset goals.

The new version of the bill removes references to the Trump family and could pass the Senate by the late spring of 2025, some industry executives say.