Democrats support stopping the stablecoin bill

The Democratic Party's Opposition to the Stablecoin Bill

The Democratic Senatorial group in the United States, supportive of the cryptocurrency industry, stated that they would oppose the stablecoin bill proposed by the Republican Party unless there are amendments. A report on May 3 from Politico indicated that this could delay the establishment of the first legal framework for stablecoins in the United States.

In a joint statement, nine Democratic senators who supported the bill when it passed the Senate Banking Committee in March expressed concerns about unresolved issues. These include Ruben Gallego, Mark Warner, Lisa Blunt Rochester, and Andy Kim.

The bill introduced by Senator Bill Hagerty, titled the Guidance and Establishment of a National Innovation for U.S. stablecoin (GENIUS) Act, has been viewed by the cryptocurrency industry as an important step towards regulatory clarity. However, the reversal by the Democrats reflects increasing unease within the party.

Although there have been amendments following the committee's approval to address the concerns of the Democrats, they believe that the changes are insufficient. The statement calls for stronger safety measures related to Anti-Money Laundering, national security, foreign issuers, and accountability for non-compliance.

Other senators who signed include Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper, and Adam Schiff. Two senators, Kirsten Gillibrand and Angela Alsobrooks, co-authors of the bill with Hagerty, are not on the list of dissenters.

Despite their opposition, Democratic senators remain committed to shaping responsible cryptocurrency regulations. They express their willingness to work alongside colleagues to address these issues.

In this context, Caitlin Long, CEO of Custodia Bank, criticized the Federal Reserve for continuing to maintain an anti-cryptocurrency policy, prioritizing stablecoins issued by major banks. Ms. Long urged Congress to quickly pass federal stablecoin legislation to change the current situation.

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