Catenaa, Saturday, May 10, 2025-Senate Democrats withdrew support for a bipartisan stablecoin bill after pressure from Senate Minority Leader Chuck Schumer and Sen. Elizabeth Warren, Politico reported last Sunday (4), casting doubt on the future of the legislation.
The reported intervention followed a closed-door meeting last week, where Schumer advised Democratic senators to hold back endorsements until more concessions could be secured from Republicans. Concerns reportedly centered on regulatory treatment of foreign stablecoin issuers like Tether and national security gaps in the proposed legislation.
Warren, a longstanding critic of the crypto industry, raised red flags about proceeding amid unresolved conflict-of-interest allegations involving Donald Trump and his family’s ties to digital assets. The meeting, described as “tense,” was not originally scheduled to address crypto.
Nine Democratic senators, including Arizona’s Ruben Gallego, publicly announced Saturday they would not support the bill in its current form — a reversal from four of them who had previously voted to advance it out of committee. Gallego defended the shift, writing on X, “The bill back-pedaled on a lot of the progress we made.”
The legislation, known as the GENIUS Act, would mandate 100% reserve backing for stablecoins and require monthly reserve disclosures and annual audits for major issuers. Democrats are seeking stricter anti-money laundering and national security provisions.
Despite the upheaval, lawmakers from both parties expressed hope the bill could still be salvaged. “We won’t let them jam us,” Gallego said, signaling continued negotiations.
