A group of nine democratic senators announced that they will withdraw their support for the milestone of the US Stablecoin legislation, unless changes are made to the bill.
In a joint statement on 3 May, the senators noted that there were various problems with the current version of the Stablecoin Bill known as the Guiding and Sturing National Innovation for US Stablecoins (Genius) Act. The senators noticed:
“Although we would like to continue working with our colleagues to tackle these problems, we would not be able to vote for Cloture if the current version of the bill comes to the ground.”
The statement was signed by Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff. Surprisingly, Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim, who all supported the bill when it took the Senate Bank Committee in March, also to the signatories.
However, it is worth noting that the two Senate Democrats in addition to main sponsor Republican Senator Bill Hagerty-Kirlsten Gillibrand and Angela Alsobrooks de Statement did not sign.
Senate Democrats want tighter regulations under the genius law
In their explanation, the Senate Democrats noted that it is “of crucial importance for the congress to work in a two -part manner” to establish clear rules and guidelines for stablecoins. The absence of such regulations leaves consumers ‘unprotected and vulnerable’, they said.
However, they are determined to keep the support for the account unless revisions are made. They added:
“We have approached this process constructively and with an open mind, with the concept that additional improvements would be made in the account.”
The Senate Democrats are of the opinion that the GUIS law “needs stronger provisions for money laundering, foreign issues, national security, the preservation of the safety and solidity of our financial system and accountability for those who do not meet the requirements of the law”.
It is worth noting that these nine Senate Democrats are not the only ones against the bill. Senator Elizabeth Warren, one of the avid critics of the bill, warned that the bill “Green-Licht could be big-tech companies and other conglomerates” to publish their own stablecoins. “
In a letter last month, a group of 20 community bank organizations also expressed their objections, with the argument that the account could move traditional deposits and expose the financial system to new vulnerabilities.
Everything about the brilliant action
Hagerty, who wrote the Genius Act, introduced the bill on 4 February 2025. The passage of the genius action will therefore be the first step to determine extensive crypto regulation in the US
According to the proposed brilliant bill, Stablecoin emission people will have to ensure that every issued token 1: 1 is supported by US dollars, insured bank deposits or short-term invoices in the short term. Stablecoin emission can also choose between federal supervision on the basis of the office of the competent of the currency (OCC) and supervision of state level.
The Senate Bank Committee approved the Genius Act in March with a vote of 18-6. Since then, Republicans have made changes to the bill, hoping to win Democrats, according to a report from Politico. In fact, many of the changes related to the issues that the Senate Democrats raised had in their declaration on Saturday.
Republicans were assured of dual support for the bill, so much so that Senate -Meerderheid leader John Thune formally moved to accelerate the consideration of the bill earlier this week. Senate Republicans hoped to push the genius law by the end of May for a floor voice.
According to Poloo, the first procedural vote for the bill is expected that next week. However, the explanation of the Senate Democrats will probably place a kink in the plan of the Republicans, while they give them more leverage to extract more concessions.
The bill requires the support of at least seven Democrats to pass the Senate.
Senator Hagerty responds to the explanation of the Democrats
In response to the declaration of the Senate Democrats, Hagerty stated that it is time for the US to promote legislation that will guarantee its leadership in the digital assets space and protect the US dollar for the coming centuries “. He added:
“We have a choice here. Go further and make all remaining changes that are needed in a dual way, or show that digital assets and crypto legislation remains an exclusively republican issue.”