Nine Democrat senators in the US have issued a joint statement opposing the updated version of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) ACT. The senators, led by Senator Ruben Gallego, highlighted several concerns with the bill, noting they cannot support it in its current form.
According to the senators, they are concerned about several provisions in the proposed Stablecoin legislation and want them to be addressed first. The issues they identified include anti-money laundering, national security, and others. They wrote:
“The bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements.”
The senators have now said they will not be able to vote in support of the bill in its current form if it comes to the Senate floor. Interestingly, four of the senators who are opposing the bill — Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester, and Andy Kimall — voted in support of the bill when the Senate Banking Committee approved it in March.
Others who signed the letter include Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper, and Adam Schiff. The senators added in their letter that they are willing to continue working with their colleagues once the issues are addressed.
Opposition follows plans to bring the GENIUS Act to Senate floor
Meanwhile, the timing of the opposition is not totally surprising given that Republicans in the Senate have started efforts to bring the bill to the Senate floor for a general vote. Senate Majority Leader John Thune started the fast-tracking process three days ago, noting that passing the law will keep crypto innovation in the US.
With a similar bill also going through the legislative process in the House of Representatives, there are expectations that a stablecoin law could be ready this year. This would make it the first Congress legislation on crypto matters.
However, the bill would need the support of at least seven Democrat senators to pass in the Senate. Since most of the senators opposing the bill are also considered pro-crypto, their decision could have significant implications for the progress of the legislation.
Nevertheless, there is still some positive development in the fact that neither of the two Democrat co-sponsors of the bill, Senators Angela Alsobrooks and Kirsten Gillibrand, did not sign the letter.
Reactions to the opposition
Meanwhile, several reactions have followed the opposition letter. The bill sponsor, Senator Bill Hagerty, wrote on X that the Senate must make efforts to advance the legislation that solidifies the position of the US as a leader in the digital assets space and protects the US dollar. He wrote:
“We have a choice here. Move forward and make any remaining changes needed in a bipartisan way, or show that digital asset and crypto legislation remains a solely Republican issue.”
The president of CoinFund, Christopher Perkins, also added that the crypto advocacy groups are trying to get more details on the national security concerns in relation to the bill so they can address or clarify it. Perkins is the co-chair of the Blockchain Association’s national security committee.
However, there are those who believe the opposition may have something to do with President Donald Trump’s crypto ambitions. The Trump family is backing World Liberty Financial, a project that recently launched the USD1 Stablecoin.
Crypto journalist Eleanor Terrett noted that there has been increasing media scrutiny of Trump’s family crypto ventures, including how they stand to benefit from stablecoin legislation, with around $2 billion worth of USD1 to be invested by a foreign fund.
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