tl;dr
Nine Democratic Senators have withdrawn their support for the U.S. stablecoin legislation, the GENIUS Act, unless changes are made. They cited the need for stronger provisions on anti-money laundering, foreign issuers, national security, financial system safety, and accountability. Some Senators who...
A group of nine Democratic Senators has withdrawn their support for the U.S. stablecoin legislation, the GENIUS Act, citing the need for stronger regulations on anti-money laundering, foreign issuers, national security, and financial system safety.
Critics such as Senator Elizabeth Warren and community banking groups warn that the bill could enable big-tech stablecoin issuance and risk traditional deposits.
The GENIUS Act proposes that stablecoins be backed 1:1 by U.S. dollars, insured bank deposits, or Treasury bills, with options for federal or state oversight.
Senate Republicans aim for bipartisan support and a floor vote by May, but Democratic opposition may delay the bill and increase demands for concessions.
Bill sponsor Senator Bill Hagerty urges bipartisan progress to secure U.S. leadership in digital assets and protect the future of the U.S. dollar.
Originally introduced in February 2025, the GENIUS Act is designed to regulate U.S. payment stablecoins by requiring full backing of tokens and setting clear oversight by the Office of the Comptroller of the Currency or state regulators.
The Senate Banking Committee passed the bill in March by a wide margin, but recent withdrawal of support from key Senate Democrats—including Ruben Gallego and Mark Warner—has complicated the path forward.
These Senators emphasize the need for stronger provisions addressing anti-money laundering, accountability, and financial system security before they can support the bill in its current form.
Despite bipartisan aspirations, the bill now faces uncertainty due to these concerns, requiring further negotiation and revision.
Senator Hagerty responded by stressing the urgency of advancing legislation to maintain U.S. digital asset leadership and safeguard the dollar's stability for generations.
He highlighted a crucial choice for lawmakers: to collaborate on bipartisan improvements or risk stalling digital asset reform as a partisan issue.
The evolving debate over the GENIUS Act reflects broader challenges in crafting cryptocurrency regulations balancing innovation, security, and systemic risk.
As the Senate moves toward possible votes, the outcome will signal the direction of U.S. policy on stablecoins and digital finance.