A faction of Senate Democrats, known for their pro-cryptocurrency stance, expressed its opposition to a Republican-led stablecoin legislation on Saturday, citing concerns about the modified version.
What Happened: A group of nine Democrats, who have previously backed crypto-friendly laws, voiced their concerns over the GENIUS Act, popularly known as the stablecoin bill, as reported by Politico. They said that the bill has multiple issues that need to be resolved before they can support it.
The statement was endorsed by Sen. Ruben Gallego (D-Ariz.), Sen. Mark Warner (D-Va.), Sen. Lisa Blunt Rochester (D-Del.) and Sen. Andy Kim (D-N.J.), who had earlier voted in favor of the bill when it got approval by the Senate Banking Committee in March.
The lawmakers said that the bill needs “stronger provisions” on anti-money laundering, foreign issuers and national security.
Sen. Elizabeth Warren (D-Mass.), a fierce cryptocurrency critic from the political fraternity, noted how a Trump family-backed USD1 became one of the most valued stablecoins, currently the fifth-largest by market capitalization, thanks to a “shady deal” with the UAE-based investment firm.
“The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption,” Warren said.
See Also: Arthur Hayes Foresees Bitcoin’s Leap To $1 Million, Says Bitcoin Does Best When Money Is Printed
The proposed legislation aims to establish the first U.S. regulatory framework for stablecoin issuers, digital tokens that are tied to other assets like the dollar.
The Senate is set to start deliberations on the landmark bill shortly, with the first procedural vote on the legislation expected as early as next week.
Senator Bill Hagerty (R-Tenn.), the bill sponsor, urged bipartisan backing for the legislation, citing its potential to strengthen U.S. supremacy in digital assets and boost the dollar.
Why It Matters: The opposition from Senate Democrats could pose a significant hurdle to the passage of the bill, potentially impacting the future of an industry projected to grow to $2 trillion by 2028.
The stablecoin legislation has been a topic of discussion since President Donald Trump called for its passage in March.
Interestingly, the dollar-pegged stablecoin USD1, launched on both Ethereum (CRYPTO: ETH) and BNB Chain (CRYPTO: BNB), was chosen to close a $2 billion deal between Abu Dhabi investment firm MGX and cryptocurrency exchange Binance, as announced by Eric Trump at a recent cryptocurrency conference.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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