Key Takeaways:
- Nine Senate Democrats, including previous supporters, now oppose the GENIUS Stablecoin Act.
- Their concerns include anti-money laundering, foreign issuer regulation, and national security.
- The act’s ties to Trump-affiliated crypto ventures add further complexity.
- The bill’s future depends on bipartisan revisions and renewed negotiations.
Nine Senate Democrats have declared their opposition to the GENIUS Stablecoin Act in its present form, stating they will not support it if it reaches the Senate. The lawmakers, some of whom previously supported the legislation, cited unresolved issues in the bill to justify their reversal.
Their opposition could block the bill’s advancement in the upper chamber, as it needs bipartisan support to pass.
GENIUS Supporters Pull Back
Earlier this year, when the House advanced the GENIUS Stablecoin Act with bipartisan support, four of the nine Democrats — Sens. Sherrod Brown, Jack Reed, Chris Van Hollen, and Elizabeth Warren — had approved its framework.
However, the new statement warned that “the bill as it currently stands still has numerous issues that must be addressed,” and the signatories “would be unable to vote for cloture should the current version of the bill come to the floor.”
GENIUS Act Raises Oversight and Security Concerns
In their statement, the lawmakers warned that a lack of regulation leaves “consumers unprotected and vulnerable to predatory practices.” They demanded that the bill address several key concerns, including “stronger safeguards around anti-money laundering, foreign issuers, national security, financial system stability, and accountability.”
Stablecoin Politics Complicate Progress
According to Politico, the GENIUS Act’s progression is further complicated by recent developments involving the Trump family. A crypto company linked to the president’s sons plans to launch a stablecoin, prompting concerns about potential conflicts of interest. This entanglement has made bipartisan alignment more difficult, even among typically crypto-friendly Democrats.
Still, the Democrats expressed willingness to continue collaborating on a revised version of the bill. “We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made,” they wrote.
GENIUS Act’s Future Remains Uncertain
This situation is similar to the Clarity for Payment Stablecoins Act of 2023, which started with bipartisan support but faced setbacks due to ongoing disputes over regulation and consumer safeguards.
Whether the GENIUS Act can avoid a similar outcome depends on the ability of lawmakers to reconcile their differences and forge a consensus that balances innovation with security.
With former supporters stepping back and demanding critical revisions, the bill’s authors must address mounting concerns or risk losing momentum entirely.
