Catenaa, Tuesday, May 06, 2025-The future of a major US. stablecoin bill is uncertain after nine Senate Democrats, including four who had previously supported the measure, reversed their stance just days before a critical vote.
The bipartisan GENIUS Act – Guiding and Establishing National Innovation for US Stablecoins -was poised to hit the Senate floor this week.
But on Saturday, the group of Democrats issued a joint statement raising “numerous issues” with the bill, citing the need for stronger anti-money laundering safeguards, tighter rules on foreign issuers, and enhanced national security protections.
Among the dissenters are Senators Ruben Gallego of Arizona, Andy Kim of New Jersey, Lisa Blunt Rochester of Delaware, and Mark Warner of Virginia – all of whom had voted to move the bill forward in March. The bill’s Democratic co-sponsors, Sens. Kirsten Gillibrand and Angela Alsobrooks, did not sign the letter.
The legislation requires stablecoin issuers to maintain 100% reserves in US dollars or equivalent liquid assets, disclose holdings monthly, and undergo annual audits. It also establishes guidelines for marketing, insolvency, and issuer accountability.
With Republicans holding only 53 seats, the bill needs at least seven Democratic votes to reach the 60-vote threshold required for passage. The internal division signals a rocky road ahead for federal crypto regulation.
