Democratic Senators Reject Support for GENIUS Stablecoin Bill
Date: 2025-05-05 Author: Gabriel Deangelo Categories: IN WORLD
According to information from Fox Business journalist Eleanor Terrett, the project in question is called Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS). The document has drawn criticism due to the lack of sufficient mechanisms to combat money laundering and terrorist financing. These shortcomings were one of the key reasons for the senators' refusal to initially support it.
Interestingly, four of the nine signatories of the critical statement had previously approved the initiative at the stage of consideration in the Committee on Banking. These are Ruben Gallego (Arizona), Mark Warner (Virginia), Lisa Blunt Rochester (Delaware), and Andy Kim (New Jersey).
Gallego commented on the change in his position, noting that Democrats had been trying to reach a compromise with Republicans for several weeks. However, according to him, their proposals were ignored, and the final version of the document did not include the agreed-upon amendments. He emphasized that he does not consider it fair to vote on the law without taking into account the opinion of his faction.
Senator Elizabeth Warren's statement caused additional resonance. She called her opposition to the bill directly related to the participation of the World Liberty Financial platform and its digital currency USD1, which was involved in a deal between the state-owned company MGX from the UAE and the crypto exchange Binance. Warren expressed concern that GENIUS could be used to legitimize the operations of this platform, which, according to her, is related to former President Donald Trump.
Eric Trump, the son of the president, previously mentioned this partnership during the TOKEN2049 conference, which only increased suspicions around the bill.
A source close to the White House said that Republicans view the Democrats' actions as a political attack on Trump and pressure on their faction. This has only exacerbated the tension in the discussions.
Recall that in March, Bo Hines, head of the President's Council of Advisors on Digital Assets, expressed hope for the adoption of comprehensive legislation on stablecoins in the coming months. In addition to GENIUS, an alternative bill is being considered - STABLE. It is possible that a combined version will ultimately be adopted, incorporating provisions from both initiatives.
