A group of Senate Democrats who support the crypto industry announced they will oppose the Republican-led stablecoin bill if it advances without key changes. This move puts the future of the bill in doubt, despite earlier bipartisan support.
Nine Democrats signed an official statement on Saturday. They threatened they would not vote for the bill’s current version should it come before them for a floor vote. Four of them voted for it last March in a Senate Banking Committee meeting.
Among them are senators such as Ruben Gallego of Arizona, Mark Warner of Virginia, Lisa Blunt Rochester of Delaware, and Andy Kim of New Jersey. They are concerned about various issues in the bill that have not been resolved.
Senate nears vote on controversial crypto bill
They enumerated weaknesses in anti-money-laundering regulation, foreign issuer oversight, national security safeguards, and enforcement. The congressmen feel that the bill is lacking in robust safeguards for ensuring the health of the system.
The Senate will consider the legislation soon. The chamber could make its procedural vote as early as next week. The legislation in question would establish the first U.S. regulatory framework for stablecoins. Those are digital assets backed by traditional currencies such as the dollar.
Senator Bill Hagerty of Tennessee is sponsoring the bill. It is considered a landmark move for the crypto industry. Crypto businesses have long called for Congress to provide regulation that could facilitate the development of digital assets in the United States. The bill had already picked up speed as increasing numbers of Democrats expressed an interest in pro-crypto legislation.
Trump crypto venture raises tensions
There have been recent shifts in the political environment. The involvement of the Trump family in another crypto venture created new questions. One company associated with the former president’s sons is set to issue a stablecoin. This raised added questions about possible conflicts of interest.
Republicans had hoped revisions made recently in the bill would make it appeal more to Democrats. The revisions met some of the concerns expressed earlier in the process. The Democrats’ new stance could alter the balance. They now have increased leverage with which to urge further modifications before a vote.
Along with the committee’s four senators, five other senators co-signed the statement. The five senators are Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper, and Adam Schiff. The senators’ combined opposition could stall the bill in the Senate and prompt fresh negotiations.
