Senate Democrats rally against crypto bill amid criticism of Trump’s ties to the industry
Senate Democrats are currently pushing back against a crypto regulation bill, known as the GENIUS Act, which aims to establish a regulatory framework for stablecoins. These stablecoins are a type of cryptocurrency that are tied to the value of assets like the U.S. dollar. The bill initially garnered bipartisan support as it moved out of the Senate Banking Committee in March. However, Democratic support has waned due to concerns surrounding President Trump and his family’s involvement in cryptocurrency ventures.
The bill faced scrutiny following the announcement of a multi-billion dollar investment by an Abu Dhabi-backed firm in a Trump family-linked crypto company, World Liberty Financial. This investment involved the purchase of $2 billion worth of a stablecoin offered by World Liberty Financial, which would then be used to invest in the crypto exchange Binance. This development raised red flags among Democrats, leading them to advocate for legislation that would prohibit elected officials and their families from engaging in crypto assets, including stablecoins.
Senate Minority Leader Chuck Schumer advised his members not to commit to voting for the GENIUS Act in order to leverage changes to the bill. Talks between Republicans and Democrats are ongoing as they seek to address concerns related to anti-money laundering, national security, and consumer protections within the legislation. While Senate Majority Leader John Thune has expressed willingness to consider modifications, a procedural vote on the bill is expected to take place on Thursday, requiring at least 60 votes to proceed.
Democratic Senator Ruben Gallego criticized Republicans for advancing the stablecoin bill without addressing Democratic concerns. He highlighted the need for improvements to be made before bringing the bill up for a floor vote. Senator Elizabeth Warren circulated a fact sheet outlining the bill’s shortcomings in safeguarding against corruption and protecting consumers, the financial system, and national security. She emphasized the importance of barring elected officials and their families from participating in stablecoin business ventures.
In response to the criticism, the White House defended President Trump’s crypto ventures, stating that his assets are managed in a trust and there are no conflicts of interest. The administration reiterated its commitment to passing stablecoin legislation on a bipartisan basis to position America as the crypto capital of the world. Meanwhile, Senator Richard Blumenthal has requested records and documents from companies involved in Trump’s crypto ventures to investigate potential conflicts of interest.
As the debate over the GENIUS Act continues, several Republican senators, including Rand Paul, Josh Hawley, and John Kennedy, have signaled potential opposition to the bill for various reasons. Senator Bernie Sanders is set to host a roundtable with crypto experts to address the perceived risks posed by the legislation to the U.S. economy. The pushback from Senate Democrats underscores the complexity and controversy surrounding cryptocurrency regulation in the current political landscape.
