Stalling of key stablecoin legislation in the US Senate was a minor setback

The stalling of key stablecoin legislation in the United States Senate was a minor setback, and the bill will pass in the coming weeks

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.

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 administration's goal of passing stablecoin legislation this year remains a priority, and 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.

“We are still very optimistic. The bill is going to pass the Senate in the next few weeks,” Carbone said.

The act failed to pass a procedural vote in the Senate on May 8 after several Democratic lawmakers withdrew support for the bill, with Trump’s involvement in crypto 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 latest version of the bill removes references to the Trump family and could pass the Senate by the end of May, some industry executives say.