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A group of U.S. Senate Democrats has withdrawn its support for the GOP-led stablecoin bill known as the “GENIUS Act,” a significant development in the ongoing debate over cryptocurrency regulation. The bill, which was designed to address issues related to stablecoins, faced strong opposition from Democrats who raised concerns about the proposed legislation’s impact on national security and anti-money laundering (AML) provisions.
The move came as the bill was slated for a Senate vote, and Democrats voiced their dissatisfaction with the bill’s lack of clear regulations for crypto transactions. They argued that the legislation failed to address accountability measures adequately, leaving room for potential misuse. As a result, the bill now faces a major hurdle, as it will require bipartisan support to advance through the Senate.
Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester, and Andy Kim are among the Democrats who have pulled their backing. They expressed their concerns about the bill’s ability to balance the growing need for crypto regulation with the protection of users and financial stability. Despite their withdrawal, some GOP members have vowed to continue pushing for the bill, highlighting the importance of establishing a regulatory framework for stablecoins in the U.S.
While the GENIUS Act initially garnered significant interest, its prospects now hang in the balance as it faces a divided Congress on crypto policy.
