Republicans reportedly plan to power a vote on the GENIUS Act this Thursday whilst Senate Democrats withdraw their help for the stablecoin framework, The Hill reported Monday.
The laws would set up federal oversight for payment-focused stablecoins and create requirements aimed toward selling security and transparency in digital asset markets.
Initially, GOP leaders argued that codifying clear guidelines would encourage innovation and assist the US preserve its edge over rivals within the burgeoning crypto sector.
Quick-Monitor Transfer on GENIUS Triggers Democratic Withdrawal
They moved shortly after Senate Majority Chief John Thune launched a fast-track process last week to tee up the ground textual content with out additional committee revisions.
Nonetheless, 9 Democrats who as soon as backed the invoice introduced on Saturday that they could not vote for its current form.
“We’ve got approached this course of constructively and with an open thoughts, with the understanding that extra enhancements to the invoice could be made,” they mentioned.
JUST IN: 9 Senate Democrats (6 of whom are members of Senate Banking Cmte.) sign new opposition to the GENIUS Act (Senate stablecoin invoice).
The group says they’re “unable to vote for cloture ought to the present model of the invoice come to the ground.” pic.twitter.com/50jsW1ftAE
— Alex Thorn (@intangiblecoins) May 3, 2025
JUST IN: 9 Senate Democrats (6 of whom are members of Senate Banking Cmte.) sign new opposition to the GENIUS Act (Senate stablecoin invoice).They cited weak anti-money-laundering measures amongst their chief considerations and inadequate safeguards towards overseas interference and nationwide safety dangers.
Ground Textual content Shock Provides to Democratic Discontent
Furthermore, key senators who superior the measure in March faulted management for stripping out negotiated enhancements. Sen. Ruben Gallego wrote on X that Democrats “have been making an attempt to barter with the Republicans for weeks.” He added that the model heading to the ground “back-pedaled on quite a lot of the progress we made.”
In the meantime, Democratic lawmakers complained that they noticed the ground textual content for the primary time when it went public.
Critics Say Trump’s Crypto Ties Warrant Deliberation
Subsequent, critics flagged new crypto ventures by former President Trump and his household. They argued these offers warranted a slowdown. World Liberty Monetary unveiled a proposed $2b transaction with Binance that will use its personal stablecoin.
Sen. Elizabeth Warren referenced this deal, whereas urging colleagues to delay the invoice. She warned “the Trump household stablecoin surged to seventh largest on the earth due to a shady crypto cope with the United Arab Emirates.”
In response, Home Democrats scheduled a separate listening to to look at Trump’s crypto actions, together with his meme coin and the World Liberty association. They argue that dashing a broad regulatory framework with out addressing potential conflicts may open the door to corruption.
As Democratic help erodes, the GENIUS Act’s prospects develop into more and more unsure. Republicans and the White Home had aimed to safe stablecoin and trading-structure reforms by August. Now they face the chance of postponement or important rewrites if the ground vote fails to win bipartisan backing.
The put up GOP Rallies to Bring Stablecoin GENIUS Act to Floor Thursday Despite Dem Backlash appeared first on Cryptonews.
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