The Halted GENIUS Act: Schumer's Tether-Focused Concerns and the Stalled Stablecoin Bill
Democratic Party Member Expresses Apprehensions Regarding Tether
The GENIUS Act, emerged by Sen. Bill Hagerty (R-TN), aspires to create a national regulatory framework for payment stablecoins. The bill successfully sailed through the Senate Banking Committee with a thumping 18-6 vote, yet faced roadblocks when presented to the full Senate. On May 8, 2025, a motion for cloture to progress with the bill fell short with a 48-49 vote, missing the required 60 votes due in part to dwindling support from Democrats who demanded more stringent provisions on anti-money laundering and national security 2.
During this turmoil, Senate Minority Leader Chuck Schumer sounded a cautionary note, urging Senators to refrain from committing to the bill to retain leverage for potential amendments 2. Although Schumer hasn't explicitly discussed Tether or its role in the bill, his concerns generally revolve around a robust regulatory framework to prioritize consumer protection and financial stability.
Despite Schumer's reservations not being explicitly tied to Tether, the stablecoin market's leading player, the debate continues about the need for strict standards in reserve management, anti-money laundering, and consumer protection for stablecoin issuers like Tether 3. The GENIUS Act endeavors to address these matters by introducing a federal regulatory framework, but specifics related to Tether are absent in the current information.
Recent reports disclose waning support from some crypto-friendly Democrats, among them Arizona Senator Ruben Gallego, who have shown reluctance towards the stablecoin bill. This newfound skepticism potentially poses hurdles to the passage of the bill that aims to bring clarity to U.S. stablecoin sector 2.
- The GENIUS Act, designed to create a national regulatory framework for payment stablecoins, has faced setbacks in its progression through the full Senate, with Senator Chuck Schumer expressing concerns about consumer protection and financial stability.
- Schumer's reservations, although not explicitly tied to Tether, the stablecoin market's leading player, have sparked debate about the need for strict standards in reserve management, anti-money laundering, and consumer protection for issuers like Tether.
- The absence of specifics related to Tether in the current information of the GENIUS Act has led to a wave of skepticism from some crypto-friendly Democrats, including Arizona Senator Ruben Gallego, who have shown reluctance towards the stablecoin bill.
- As the GENIUS Act aims to bring clarity to the U.S. stablecoin sector, the lack of support from certain Democrats could potentially pose hurdles to its passage, and the role of stablecoins, such as Tether, in the bill's implementation remains a topic of ongoing discussion within policy-and-legislation and general-news circles.
