Crypto Drama on Capitol Hill: Pro-Stablecoin Democrats and the GENIUS Act
In the thick of it
Congress edges closer to settlement on digital currency legislation as officials hurry to beat deadline
It seems the GENIUS Act, a bill that aims to establish a framework for stablecoin use in the US, might be getting another shot after a meeting between key Democratic senators on Wednesday. Not too long ago, these senators, including Ruben Gallego, Mark Warner, and Angela Alsobrooks, withdrew their support for the bill on Saturday.
Scene Unfolding
These pro-crypto Democratic senators met with their Republican counterparts to discuss terms that would win back their support. Insider sources report that they're eager to find a deal. The group had previously supported the act, but withdrew due to concerns about the latest draft.
The pullback was likely triggered by a mix of factors, such as disappointment over not being included in discussions about the bill's latest draft, and escalating anger in party ranks at President Donald Trump's perceived crypto-related conflicts of interest.
Trump's Crypto Ventures
President Trump is embroiled in various crypto ventures. These include a meme coin trading under the ticker TRUMP and a DeFi project called World Liberty Financial, which raised over $550 million in a public token sale. World Liberty Financial recently issued its own dollar-denominated stablecoin.
In response to the Democrats' withdrawal, Senate Republicans, taken aback, filed for a cloture vote on the GENIUS Act. Senate Majority John Thune stated that if Democrats refused to support the bill, they would prove that digital asset and crypto legislation remains a solely Republican issue.
What are Stablecoins?
Stablecoins are digital assets generally pegged to the U.S. dollar. They allow users to trade and send remittances without accessing dollars directly. These assets are crucial to the crypto economy's operation.
The Race to a Deal
With the potential for a procedural vote on Thursday, Senate staffers are scrambling to rewrite the bill, hoping to appease all parties. The bill's fate, however, remains up in the air as it's unclear if they can hammer out a deal in time for Thursday's vote. Tensions are high, and a missed vote could deal a fatal blow to crypto's legislative momentum.
Crypto Politics Heat Up
On Tuesday, House Democrats staged a walkout from a digital assets-related hearing, citing "Trump's crypto corruption." Behind the scenes, crypto policy leaders worry that political calculus on Capitol Hill has shifted against them. If Republicans push a cloture vote and the motion fails to pass, crypto's legislative momentum could falter.
Developments in Senate
During a four-hour meeting on Wednesday, holdout senators made progress with both Democratic and Republican staffers. Now, they're hoping to turn these verbal agreements into bill language that all senators can accept. However, it's uncertain whether the relationships between the Democrats and Republicans are strong enough to get the bill across the finish line by Thursday's vote.
For updates on this developing situation, stay tuned. The crypto world is buzzing with anticipation.
- The GENIUS Act, a bill focusing on stablecoin use in the U.S., might be reconsidered following a meeting between key Democratic senators and their Republican counterparts.
- Pro-crypto Democratic senators, including Ruben Gallego, Mark Warner, and Angela Alsobrooks, met with Republicans to discuss terms that could Win their support back for the GENIUS Act.
- President Trump's involvement in various cryptocurrency ventures, such as TRUMP meme coin and World Liberty Financial DeFi project, could have contributed to the senators' withdrawal from the GENIUS Act.
- World Liberty Financial, a DeFi project backed by Trump, recently issued its own dollar-denominated stablecoin.
- With a potential procedural vote scheduled for Thursday, Senate staffers are working diligently to rewrite the bill to appease all parties.
- House Democrats recently staged a walkout from a digital assets-related hearing, claiming "Trump's crypto corruption." This could signify a shift in political calculus on Capitol Hill, potentially affecting crypto's legislative momentum.
