In the US, a group of nine Democratic senators who previously supported the Republican Party’s GENIUS stablecoin bill have said they will not support it in its current form.
They noted that the legislation lacks guarantees to combat money laundering, restrictions for foreign issuers and national security.
As stablecoins continue to grow in popularity, it is critical for Congress to work in a bipartisan manner,” the senators wrote. “We recognize that the lack of regulation leaves consumers unprotected and vulnerable to predatory practices.”
The bill, formally known as the GENIUS Act, is being sponsored by Senator Bill Hagerty and aims to establish the first federal framework for stablecoin payments. According to the bill, stablecoins would be backed by liquid assets and their issuers would not be allowed to engage in lending.
The bill passed the Senate Banking Committee in March with bipartisan support, but Democrats are now holding back.
Their decision may be related to growing concerns among Democrats about Trump-linked crypto companies and potential conflicts of interest.
«We have a choice,» Haggerty wrote. «Move forward and make any necessary changes in a bipartisan manner, or show that digital asset and cryptocurrency legislation remains a Republican-only issue.»
At least seven Democratic votes will be needed to advance the bill.
