Regarding the negative developments in the U.S. cryptocurrency industry, the highly anticipated Stablecoins legislation failed to advance in the U.S. Senate after not receiving enough support from the Senate Democrats. Several Republican senators criticized Democrats for putting “partisan politics above policy.”
Democrats block stability bill
On Thursday, after several lawmakers pulled out of their support over the past week, directed and established the US Stablecoins (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act (Genius) Act
As Reuters reported, only 49 senators voted to introduce the bill, reducing the 60 votes needed to end the legislative debate. It is worth noting that two Republican senators voted against advancing the bill with the Democrats.
In February, U.S. Senator Bill Hagerty proposed the Genius Act to create a framework that allows tokens like USDT and USDC to fall under Fed rules.
The bill, co-sponsored by Senators Tim Scott, Cynthia Lummis, Kirsten Gillibrand and Angela Alsobrooks, will create a “safe, pro-cultivated regulatory framework that will unleash innovation and promote the president’s mission to make America the world of Crypto.”
After several Democrats showed support over the past few months, stable legislation has been seen as a bipartisan effort to improve regulatory clarity. In addition, the bill has various amendments to address Senator concerns, including stricter requirements for Stablecoin issuers and anti-money laundering (AML).
Still, ten Senate Democrats are further concerned about the May 3 revision, with many lawmakers reportedly caught off guard. Among critics, four Democrats who previously supported the bill signed an opposition statement.
Members claim that the bill omits basic AML and national security safeguards and enacts regulations that could make cryptocurrency market exploitable.
Similarly, Senator Elizabeth Warren urged Congress to reject the Genius Act because it could pave the way for so-called “crypto corruption.” On May 4, crypto skeptics claimed that the Trump family could reach a deal with MGX from World Free Finance Corporation (WLFI) USD1 Stablecoin, a company based in the United Arab Emirates.
The deal includes $2 billion investments linked to Binance and WLFI’s Stablecoin. Warren confirmed that the Senate should not approve the crypto bill “to achieve this type of corruption.”
U.S. senator calls for “political game skills”
Tim Scott, one of the bill’s co-sponsors and chairman of the Senate Banking Committee, called on Democrats to “pass bipartisan legislation to engage in politics.” Scott said in a Senate speech on May 8 that Senate Democrats put partisan politics above policy and innovation.
For Americans (…), democratizing their financial system (…) should be a day of history. Instead, we witness disappointing political game skills that make partisan politics superior to policy and hinder innovation.
He confirmed that the Genius Act was a bipartisan achievement of the Senate Banking Committee, adding that the shift was not driven by a “substantial” change in the bill. He claimed that failure was not a vote on legislation, but a vote on President Trump and his legislative agenda.
She said: “Senator Loomis also expressed disappointment with X: “There is no doubt that digital assets are the future and the United States must lead. “It is important that we continue to push forward digital asset legislation to maintain U.S. dollar dominance and make the U.S. the global crypto capital,” she added. ”
Meanwhile, Treasury Secretary Scott Bessent argued that the world needs stablecoins and other digital assets from U.S. leaders to thrive. He criticized the Senate for passing the bill for missing out on “the opportunity to provide the leadership.”
“Without it, Stablecoins will be patched up by state regulations rather than a simplified federal framework that is more conducive to growth and competitiveness. The world is watching when U.S. lawmakers twist their thumbs. Senators vote for our originality today, facing a simple choice today: stepping on a simple choice: either stepping on the rise or in the digital Asset Innovation Offshore Offshore Offshore Offshore, which he ends up.
Bitcoin (BTC) trades at $102,982 in the one-week chart. Source: BTCUSDT on TradingView
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