Democrats are pushing back on a bill that has been seen as an easy win for the crypto industry.
The stablecoin bill has lost bipartisan support as Donald Trump pursues various crypto ventures.
Democrats are pushing anti-corruption measures focused on crypto.
President Donald Trump’s crypto ventures are getting in the way of his own agenda.
The fate of a bipartisan stablecoin bill has fallen into doubt as congressional Democrats show frustration with the president’s crypto moves. The so-called GENIUS Act, once considered a quick win for the industry, is now losing support on one side of the aisle.
Pushback has grown as Trump and his family dabble in a range of crypto endeavors. These include the issuance of his own meme coin before his inauguration, involvement in a new stablecoin, a possible family stake in Binance, and a partnership between the Trump Media & Technology Group and crypto.com.
Trump will also be present at a dinner for the top holders of his $Trump memecoin. The event has even drawn the scrutiny of some Republican backers, such as crypto-supporting Sen. Cynthia Lummis.
All of that is creating obstacles for the proposed stablecoin legislation. After the bill successfully passed through the Senate Banking Committee in March with bipartisan support, nine Senate Democrats warned Saturday that they would not support the legislation in its current form.
“The bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements,” the statement read.
Other Democrats were more direct about the problems they saw.
“Since the committee vote, president Trump’s aggressive efforts to profit from stablecoins and the obvious opportunities for bribery and other influence peddling have demonstrated why it is vital that we make meaningful, substantive reforms to the bill,” Sen. Elizabeth Warren said in a Monday speech.
The emerging resistance isn’t against stablecoin legislation itself, as both parties acknowledged a desire for a crypto law of its kind. But with concern over crypto corruption growing, Trump’s actions are impacting the appetite among Democrats to do anything that would lower the guardrails in the space.
Democratic Sen. Jeff Merkley on Tuesday introduced the End Crypto Corruption Act, a bill that would bar the president and other high-ranking government officials from issuing, sponsoring, or endorsing digital assets.
