Written by: Ashley, Penny
The stablecoin bill, which has been closely watched and relatively smooth since Trump's return to the White House, has recently encountered obstacles. The 'GENIUS Act' or the 'Guiding and Establishing National Innovation for Stablecoins Act' is a legislative proposal submitted by the U.S. Senate on February 4, 2025, aimed at establishing a comprehensive regulatory framework for "payment stablecoins" within the United States to promote financial innovation, protect consumers, prevent illegal financial activities, and consolidate the dollar's dominant position in the global financial system.
This milestone crypto bill encountered unexpected obstacles during negotiations. Nine key Democratic senators publicly stated on May 3 that they would refuse to support the Republican-proposed revised version. On May 9, the Senate rejected the 'Stablecoin Innovation and Security Act' with a vote of 48:49, with Democrats collectively vetoing the bill's advancement. The bill aimed to establish the first federal regulatory framework for stablecoins pegged to the U.S. dollar, which was a key focus of Trump's crypto policy.
Also today, the long-standing case between Ripple and SEC finally came to an end, with its association with U.S. political groups being pushed into the spotlight by Democrats, who openly emphasized the need to prohibit the Trump group from participating in cryptocurrency.
Political Group Interest Transfer, Rift Between Senate and House
[The rest of the translation follows the same professional and accurate approach, maintaining the specific crypto terminology translations as specified in the initial instructions.]The GENIUS Bill, which was originally expected to undergo a procedural vote this week, has been stalled due to moral controversies and conflict of interest allegations. Bank Committee senior members like Elizabeth Warren argue that the bill might facilitate presidential profiteering, calling on the Senate to reject the bill. She distributed a newsletter to all Democratic senators, highlighting the bill's shortcomings in anti-corruption, consumer protection, financial system stability, and national security. The newsletter suggests that the bill should prohibit elected officials and their families from participating in stablecoin business to avoid conflicts of interest.
Meanwhile, Senator Jeff Merkley proposed the "Ending Crypto Corruption Act" on May 6th, which prohibits the President, Vice President, Congress members, and their immediate family from profiting from crypto assets. The bill was co-sponsored by 10 Democratic senators, including Kirsten Gillibrand and Angela Alsobrooks, who were original co-sponsors of the GENIUS Bill, demonstrating deep concerns within the Democratic Party about Trump's crypto business.
Related reading: "WSJ: Democrats Target Trump's Crypto Empire", "Trump's Potential Hundreds of Millions in White House Earnings? Senate to Investigate..."
Additionally, stablecoin giant Tether is also under scrutiny. According to two anonymous Democratic staff members, Senate Minority Leader Chuck Schumer (Democrat from New York) urged colleagues during a closed-door meeting on Thursday to refrain from supporting the bill, advocating for further modifications through negotiation. He specifically questioned the bill's regulatory provisions for foreign companies like Tether. They pointed out that the GENIUS Bill lacks strict oversight of foreign companies like Tether, potentially opening doors for money laundering and terrorist financing.
This morning, the US Senate rejected the "Stablecoin Innovation and Safety Act" with a vote of 48:49, with Democrats collectively voting against advancing the bill. The bill required 60 votes to proceed to the Senate's final voting procedure, while Republicans currently hold a slim 53-47 majority. Democrats demanded the inclusion of clear provisions prohibiting administrative officials, including former President Trump and his family members, from holding or trading cryptocurrencies, and strengthening anti-corruption clauses. Will policy prioritize consolidating US dollar hegemony or preventing interest transfer? The crypto development path, compounded by partisan conflicts, may face more challenges in the future.
