The Democrats of the Senate are reluctant to advance the historic legislation of Stablecoin due to the growing personal advantages of President Donald Trump of his own cryptographic links.
During the weekend, Senator Ruben Gallego, a democrat elected to represent Arizona with $ 10 million in Crypto Super Pac Fairshake support, warned eight of his colleagues whom they would not vote to advance the current version of guidance and the establishment of national innovation for us stablecoins of 2025 (Genius Act), the senatorial bill template. The Senate would need 60 votes to move forward with legislation.
However, the greater problem for cryptographic industry can be the effect that this new fight has on the structure of the upcoming market. The Stable Bill should finally travel the congress, a person working with legislators and legislative aid in Coindesk, but any slowdown in continuous momentum could threaten that the bill, which in turn will probably retrace any progress on the legislation on the structure of the market intended to define the industry. The legislation on the structure of the market – a bill that industry has required for years – will cover a much broader range of activities than the simple bill of Stablecoin.
Two recent announcements in particular may have raised the concern of the Democrats and led to the announcement of this weekend: Trump’s announcement of a dinner for the best holders of his MGX announcement of the Abu Dhabi and Abu Dhabi investment company. The two suggest that Trump himself could benefit personally up to hundreds of millions of dollars, said USA Today.
Trump said he did not take advantage of his cryptographic companies during an interview with Meet The Press during the weekend.
“I don’t take advantage of anything,” he said. “All I do is that I started as well before the elections. I want the crypto. I think the crypto is important because if we don’t do it, China goes.
While Gallego’s announcement was published this weekend, Democrats have been behind the scenes for a few days, Senator Chuck Schumer, the minority chief, warning the Democrats to hold his support at a Caucus meeting last week, Coindesk confirmed. Axios first reported this fault.
One of the people who spoke in Coindesk said they were concerned about the duration of the fight against Trump’s participation with the crypto could lead to the legislative process of the bill on stables, which Democrats will have to vote to advance the bill and whether or not the situation will prevent a bill on the structure of the market to advance at all.
Gallego’s declaration, which was co-signed by Democrats Mark Warner, Raphael Warnock, Lisa Blunt Rochester, Catherine Cortez Masto, Andy Kim, Ben Ray Luján, John Hickenlooper and Adam Schiff, said that the legislators “recognize that the absence of the regulations do not leave the unprotected legislation for”
“However, the bill as is currently being still has many problems that must be resolved, in particular by adding more solid provisions on laundry whitening, foreign transmitters, national security, preservation of the security and solidity of our financial system and the responsibility of those who do not meet the requirements of the law,” said the press release.
Gallego, Warner, Kim and Blunt Rochester had already joined the Republicans to vote to advance the bill of the senatorial banking committee.
Senator Elizabeth Warren, who directs the Democrats of the Senate Banque Committee, was much more frank in an article on the Bluesky social media site, saying that the Senate should not adopt a bill which “would facilitate this type of corruption”, referring to the announcement of MGX – publicly shared by Eric Trump, one of the sounds of the president – last week.
“The stablecoin of the Trump family has reached the 7th largest number in the world due to a shady crypto agreement with the United Arab Emirates-a foreign government which will give them a mad money,” she said.
She wrote a joint letter with her colleague Democrat Jeffrey Merkley to the acting director of the US Office of Government Ethics asking her office to investigate the MGX agreement on Monday.
Stalling momentum is not limited to the Senate. Earlier Monday, representative Maxine Waters, the main DEM of the Chamber’s Financial Services Committee, told the Chairman of the Committee that it would block efforts to maintain a joint audience with the Chamber’s Agriculture Committee, addressing the structure problems of the market.
“Most of this is politics,” said Jaret SEIBERG, a financial policy analyst at TD COWEN, in a note on customers on Monday. He said that Trump’s personal participation in Crypto makes it difficult for Democrats to support the stable bill that would regulate family affairs. Despite this, he predicted that it would always pass the Senate, but maybe not this week.
“The crypto hall is politically powerful and has shown a desire to consecrate its considerable resources to influence Washington,” said SEIBERG. “It is difficult for us to see why the Democrats would assume this fight when they can take advantage of the important GOP concessions on the Stable bill.”
The lobbyists of the cryptographic industry seem to be alarmed by the announcements of the last days: a joint declaration published Monday urged legislators to start the debate on the floor plan on the bill.
The declaration, signed by the outgoing CEO of the Blockchain Association, Kristin Smith, the acting CEO of Crypto Council for Innovation, Ji Kim, and the new CEO of the digital chamber, Cody Carbon, said that a real regulatory framework would support the adoption of the stable and the “domination of the dollar in the digital economy”.
“We respect the senators respectfully to vote yes on the motion of procedure to the consideration of the engineering law and bring us one step closer to promulgate a bipartite framework of Stablecoin,” said the press release.
Another lobbying organization, the National Venture Capital Association, also weighed with a declaration awarded to the CEO Bobby Franklin asking the Senate to advance the Stable Bill.
“American leadership in the digital economy depends on the establishment of a clear and coherent regulatory framework for stablecoins which promotes innovation, empowers entrepreneurs and helps build the next generation of financial technologies,” the press release said. “A solid framework of Stablecoin will also support the efforts of the venture capital industry to support revolutionary companies and strengthen the world’s leadership of America’s financial technology.”
Read more: Us Crypto Market Bill Bill unveiled by the Chamber legislators
