The Democratic Party's Opposition to the Stablecoin Bill
A group of U.S. Democratic senators who support the cryptocurrency industry stated they would oppose the stablecoin bill proposed by the Republican Party without modifications. A May 3rd report from Politico suggests this could delay establishing the first legal framework for stablecoins in the United States.
In a joint statement, nine Democratic senators who previously supported the bill when it passed the Senate Banking Committee in March expressed concerns about unresolved issues. These include Ruben Gallego, Mark Warner, Lisa Blunt Rochester, and Andy Kim.
The bill introduced by Senator Bill Hagerty, named the Guiding and Establishing National Innovation for U.S. Stablecoin (GENIUS) Act, was considered a significant step towards regulatory clarity by the cryptocurrency industry. However, the Democratic Party's reversal reflects growing unease within the party.
Despite modifications after committee approval aimed at addressing Democratic concerns, they believe the changes are insufficient. The statement calls for stronger safeguards related to Anti-Money Laundering, national security, foreign issuers, and accountability for non-compliance.
Other signing senators include Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper, and Adam Schiff. Senators Kirsten Gillibrand and Angela Alsobrooks, co-authors of the bill with Hagerty, were not on the list of opponents.
Despite their opposition, the Democratic senators remain committed to shaping responsible cryptocurrency regulation. They expressed willingness to work with colleagues to address these issues.
In this context, Caitlin Long, CEO of Custodia Bank, criticized the U.S. Federal Reserve for continuing its anti-cryptocurrency policy, prioritizing stablecoins issued by large banks. Long called on Congress to quickly pass a federal stablecoin law to change the current situation.
