Senate Democrats recently blocked a significant cryptocurrency regulation bill, the GENIUS Act, which aimed to regulate “stablecoins,” a type of digital currency tied to the US dollar’s value. Despite months of negotiations between Democrats and Republicans, the final vote tallied at 49-48, with Republican Senators Rand Paul and Josh Hawley joining Democrats in voting against the bill. This decision came after concerns emerged regarding the bill’s potential impact on former President Donald Trump’s cryptocurrency dealings.
Democratic Senators Push for Changes to GENIUS Act, Cite Concerns Over Key Provisions
The GENIUS Act garnered support for its push to regulate stablecoins, but key Democratic senators raised concerns about its current form. Nine Democratic senators, who had initially shown support, sent a letter requesting further changes to the bill. They argued that in addition to addressing issues related to Trump’s crypto activities, the bill lacked strong provisions on anti-money laundering, national security, consumer protection, and financial system stability. As such, they refused to vote for the bill until these concerns were addressed.
Senate Democrats Block GENIUS Act Over Trump Ties and Crypto Regulation GapsSenate Majority Leader John Thune attempted to rally enough votes to meet the 60-vote threshold needed to advance the legislation. He suggested that negotiations could continue after the vote, urging senators to pass the bill first to allow further amendments on the floor. However, Democratic senators remained wary, insisting that the bill needed to be properly refined before advancing to prevent any long-term issues.
Elizabeth Warren Opposes GENIUS Act, Citing National Security Risks and Consumer Protection Gaps
Senator Elizabeth Warren led the charge against the GENIUS Act, arguing that the bill would benefit Donald Trump’s financial dealings while putting national security at risk. She criticized the bill for lacking sufficient consumer protection measures and for potentially destabilizing the US economy. According to Warren, the bill would also disproportionately protect wealthy individuals and companies, raising concerns about taxpayer bailouts in the event of economic failure.
The GENIUS Act was the result of a rare bipartisan effort in the Senate, co-sponsored by Senators from both parties. Despite significant progress, disagreements over key provisions caused delays. Some Democratic senators, such as Mark Warner and Ruben Gallego, called for more time to address outstanding issues before holding a vote. As the debate over cryptocurrency regulation continues, some senators emphasized the need for a comprehensive, well-crafted bill to prevent further complications, especially in light of Trump’s involvement in the cryptocurrency industry.
