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11h ago

Senate Stablecoin Bill Faces Uncertainty After Democratic Defections

Republicans push forward with the GENIUS Act vote as nine Senate Democrats withdraw support, citing concerns over anti-money laundering, foreign influence, and Trump family crypto ties.

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Both chambers have a busy week ahead at the Capitol.
Sen. Bill Hagerty, R-Tenn., the bill's sponsor, said he didn't want "partisan games" to derail momentum for the bill.

Overview

  • The GENIUS Act, a bipartisan bill to regulate stablecoins, is set for a procedural Senate vote this week despite losing support from nine Democratic senators.
  • Democratic lawmakers who previously backed the bill now demand stronger provisions on anti-money laundering, foreign issuer oversight, and national security safeguards.
  • Sen. Elizabeth Warren has criticized the Trump family’s $2 billion UAE-linked stablecoin deal, calling it corrupt and warning the legislation could enable self-dealing.
  • The Trump-backed USD1 stablecoin, issued by World Liberty Financial, is being used in a $2 billion transaction between Abu Dhabi's MGX and Binance, raising ethical concerns.
  • Sen. Bill Hagerty, the bill’s lead sponsor, argues the GENIUS Act is crucial for U.S. financial innovation and dollar dominance, but its passage now faces significant hurdles.