Senate Stablecoin Bill Hits Roadblock Amid Bipartisan Clash
By: crypto news|2025/05/05 19:45:01
0
Share
The US Senate is facing a sudden breakdown in negotiations over a landmark cryptocurrency bill, placing one of former President Donald Trump’s top financial policy priorities in jeopardy.The legislation, aimed at establishing the country’s first federal regulatory framework for stablecoins—digital assets pegged to the U.S. dollar—has hit a bipartisan snag, following pushback from key Senate Democrats.On Saturday, nine Democratic senators, including some who had previously backed the bill in committee, issued a joint statement rejecting a revised version of the legislation introduced by Republicans last week.Senate Democrats Say Revised Crypto Bill Lacks Key ProtectionsThe new draft, they argue, falls short on critical safeguards against money laundering and fails to adequately protect the financial system.Senator Ruben Gallego, who led the Democratic response, said efforts to negotiate improvements had been ongoing for weeks, but the latest version “backpedaled on a lot of the progress we made.”In a post on X, he criticized Republicans for seeking a floor vote without incorporating Democratic input.The clash has emerged despite growing bipartisan interest in advancing crypto regulation.The stablecoin bill, spearheaded by Sen. Bill Hagerty (R-Tenn.), was passed out of the Senate Banking Committee in March with backing from five Democrats.However, momentum appears to have stalled amid deepening political divisions.Democratic concerns reportedly intensified during a private caucus meeting last week, where Senate Majority Leader Chuck Schumer urged colleagues not to commit to the bill in its current form.According to aides, Schumer raised issues with how the legislation might treat foreign firms like Tether, the issuer of the largest stablecoin globally.Senator – I am going to destroy the people who supported you from crypto. And I will be successful in ensuring 100% of funding goes to defend the GOP *house* in 26 so that you suffer four years of losses. You were never a good faith actor, my friends were too weak to admit it.— Ryan Selkis (d/acc) (@twobitidiot) May 4, 2025Senator Elizabeth Warren also voiced strong opposition, citing reports that a $2 billion deal backed by Abu Dhabi would use stablecoins issued by a Trump-affiliated firm.The Massachusetts senator warned against pushing through industry-friendly legislation while the Trump family expands its crypto ventures.Despite these objections, Sen. Kirsten Gillibrand, a co-sponsor of the bill, defended the revised draft, asserting that regulation—not delay—is the best way to address concerns over Trump’s crypto involvement.Four of the five Democrats who initially supported the bill have now said they cannot back the current version.Without their support, Republicans would struggle to secure the 60 votes needed to proceed. Nevertheless, lawmakers on both sides say talks will continue in hopes of reaching a bipartisan resolution.Stablecoin Market to Surge 10x to $2 Trillion by 2030Citigroup has projected a dramatic rise in the stablecoin market, forecasting that its total market capitalization could soar from nearly $240 billion today to over $2 trillion by 2030.The prediction says the growth in adoption would be driven by regulatory developments and increased interest from both financial institutions and the public sector.According to the banking giant, stablecoin supply could reach $1.6 trillion by the end of the decade under its base-case scenario, while a more optimistic outlook places the figure at $3.7 trillion.As reported, the number of active stablecoin wallets has surged by over 50% in the past year, reflecting growing adoption and engagement within the digital asset ecosystem.The post Senate Stablecoin Bill Hits Roadblock Amid Bipartisan Clash appeared first on Cryptonews.
You may also like

WLFI at it Again? Banking License Controversy Amid $500M Investment
The UAE's investment in World Liberty Financial has heightened concerns over whether it received special treatment and whether national security issues are involved

The Aave civil war escalates, Morpho quietly doubles: Is the lending throne about to change hands?
Wall Street asset management giant Apollo Global Management invested $160 million in Morpho.

Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."

Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.

Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.

The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point

Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.

The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.

The world belongs to Chinese people who speak English
The world is vast, and only playing half of it is truly a loss.

Why Stop at 126K? Michael Saylor Breaks Down BTC Stagnation and Retail Absence Truth
Bitcoin is digital capital, and I will spend a thousand hours explaining it to you. Eventually, you will understand, but you will still have to endure a 45% crash.

Virtuals Protocol's inaugural Titan project: ROBO aims to give a wallet to a robot
This is a key step in Virtuals expanding the Agent Economy into the Embodied AI and Robotics field.

Stablecoin Latest Report: Actual Distribution and Circulation Much More Notable Than Supply
The Truth about Stablecoin Circulation Speed, Concentration, and Structure After Doubling the Supply

Paradigm's New Arithmetic: When Crypto Can't Hold 12.7 Billion, AI Becomes the Answer
It took Paradigm three years to emerge from the ruins of FTX.

Wintermute Founder: In the Lost Cryptocurrency Market, What Can We Still Do?
This is more like a manifesto, discussing "the very reason we are here."

$1.3 Billion Debt: BitDeer Faces Tough Battle
Wu Jihan is waiting for AI's money to catch up with the speed of debt.

Anthropic's IPO Gamble: At the Most Unlikely Moment, It Chose to Say No
In the AI Era, what is the most valuable thing?

Paradigm's Math Problem: $12.7 Billion, Too Big for a Single Crypto Fund
Emerging from the ruins of FTX, Paradigm took three years

Ethereum Unveils Scaling Roadmap, What's Different This Time?
Short-term improvements to execution efficiency through the Gas mechanism optimization and block validation parallelization, and long-term scalability through ZK-EVM and blobs data architecture.
WLFI at it Again? Banking License Controversy Amid $500M Investment
The UAE's investment in World Liberty Financial has heightened concerns over whether it received special treatment and whether national security issues are involved
The Aave civil war escalates, Morpho quietly doubles: Is the lending throne about to change hands?
Wall Street asset management giant Apollo Global Management invested $160 million in Morpho.
Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.
Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.
The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point