Originally a promising effort to apply transparent rules to cryptocurrencies and Stablecoins, it encountered serious obstacles.
On May 4, 2025, ten U.S. senators swinged over the revised version of the Genius Act, pointing out that it could do more harm than good. According to X post by crypto news reporter Eleanor Terrett, the action caught many people off guard, especially because some on the list supported the bill a few weeks ago.
Among the critics against them are four Democrats – Ruben Gallego, Mark Warner, Marilyn Strickland Kim and Lisa Blunt Rochester, who all supported the bill during a Senate Banking Committee hearing.
News: Senator @rubengallego The other nine senators have just issued a joint statement on the update text of the Genius Act issued last week, saying they cannot support the bill in their current form. The team pointed out some issues, including shortcomings… pic.twitter.com/876m4wcvda
– Eleanor Terrett (@Eleanorterrett) May 3, 2025
Their changes add to increasing weight, so the proposed rules have the potential to undermine anti-money laundering protections and put financial stability at risk. Angela Alsobrooks, co-sponsor of the bill, refused to sign a letter of objection.
Senator’s alarm bell rings over national security and AML loopholes
According to a joint statement issued by the senators, the latest draft bill omits basic safeguards. Their focus is most prominent in national security and anti-money laundering (AML) protection. They also informed of ambiguity regulations that could make cryptocurrency market exploitation.
The legislation was proposed in February 2025 Technically, the legislation is titled “Creating National Innovation for the U.S. Stablecoins Act for the U.S. Stablecoins Act.” Supporters say this will allow the United States to remain competitive in financial technology without jeopardizing consumers. However, this latest backlash suggests that legislators are not all on the same page when it comes to “safety.”
Crypto investors are leaving the darkness again?
This rebound adds more unpredictability in the already volatile crypto market. The day before the Senators issued their statement, the new language in the bill was revealed. Now, businessmen and investors waiting for clarity are waiting again. If lawmakers cannot make up their minds on the gist of the bill, it may take several months to sign any version.
Image: The Shib Daily
This delay can cause damage. Payment stablecoins are pegged to the dollar and are often used as safe havens amid volatile market volatility. Crypto exchanges and developers may be reluctant to develop or expand within the U.S. without clear instructions from lawmakers.
The strong backlash is striking because it happens as the Senate tries to hurry up the bill and as news agencies investigate U.S. President Donald Trump’s cryptocurrency adventure and potential connections involving his relatives.
Artificial intelligence and blockchain projects can feel the heat
The goal of the bill includes promoting innovation that intersects blockchain and artificial intelligence. That’s why the senator’s opposition has also attracted the eyebrows of the tech community.
If money and policy support are struggling in a political impasse in Washington, the tokens of AI plans created on the blockchain could have indirect effects.
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