Legislative Stalemate on the GENIUS Act Chooses Sides in Crypto World
Senate standoff threatens Trump's cryptocurrency legislation, as Democrats protest intensifies
It looks like the fate of the U.S. Senate's stablecoin bill, the GENIUS Act, hangs in the balance just before a scheduled vote on Thursday.
Democrats, spearheaded by Senators Elizabeth Warren and Reuben Gallego, are digging their heels in and planning to oppose the bill in its current form. They're demanding stronger anti-money laundering measures and other safeguards to prevent corruption and protect our financial system.
On May 5, Warren voiced her concern that the bill as it stands would enable corruption, referencing a recent $2B crypto deal between Trump-backed World Liberty Financials (WLFI) and Binance. She's not shy about her stance, stating, "The Senate shouldn't pass a crypto bill this week to facilitate this kind of corruption."
The details of this dubious deal are scattered across the press, with the New York Post reporting that the UAE procured a stake in Binance through WLFI's stablecoin (USD1).
Republicans' Push for the Stablecoin Bill
Initially, Democrats and Republicans supported the GENIUS Act upon its introduction. However, the ranks of Senate Democrats have shifted, with at least nine senators, including Gallego, withdrawing their support due to unaddressed issues concerning anti-money laundering, foreign issuers, national security, and more.
The bill's passage was expected to be a significant victory for the crypto industry, giving a major boost to the rapidly evolving stablecoin sector.
Republican Senator Bill Hagerty, driving the bill, calls for bipartisan collaboration to push the necessary changes through. In his words, "We must advance legislation that enshrines American leadership in the digital asset space and protects the US dollar for centuries to come. That time is now."
Naturally, the crypto community isn't holding back its criticism of the Democrat-led opposition. Justin Slaughter, regulatory affairs executive from Paradigm, vocalizes the community's concerns, stating, "It is wild to me that much of the Democratic Party has realigned with banks broadly and even the too big to fail banks, but it has happened."
Ripple's legal chief, Stuart Alderoty, adds fuel to the fire, dubbing Warren's stablecoin blockade a "cheap political shot."
With dollar-pegged stablecoins witnessing rapid growth led by Tether's USDT and Circle's USDC, the approval of the bill would strengthen consumer protection and uphold America's lead in financial innovation.
- Senators Elizabeth Warren and Reuben Gallego, supported by Democrats, have planned to oppose the GENIUS Act in its current form due to insufficient anti-money laundering measures and other safeguards.
- Justin Slaughter, a regulatory affairs executive from Paradigm, has expressed concerns about the Democrat-led opposition to the GENIUS Act, stating that many Democratic Party members seem to align with traditional banks instead of supporting the crypto industry.
- The GENIUS Act, if passed, would provide a significant boost to the rapidly evolving stablecoin sector, with dollar-pegged stablecoins witnessing rapid growth led by Tether's USDT and Circle's USDC.
- Republican Senator Bill Hagerty urges bipartisan collaboration to push necessary changes through the GENIUS Act, emphasizing the need to enshrine American leadership in the digital asset space and protect the US dollar for future generations.
- In the midst of this political bipartisan debate over the GENIUS Act, the crypto community has strongly criticized the Democrat-led opposition, with Ripple's legal chief, Stuart Alderoty, referring to Warren's stablecoin blockade as a "cheap political shot."
