Some Democrats aren’t on board with updated stablecoin legislation in the Senate, even as their colleagues tout “major victories” following negotiations with Republicans.
Senate Banking Committee Democratic staff argued in a memo that new draft text of the GENIUS Act “paves the way for more Trump crypto corruption” and “permits Big Tech companies to issue their own stablecoins,” among other concerns.
A draft of the legislation circulating online does not include language barring President Trump or his family from participating in stablecoin business ventures, the memo noted.
They also took issue with new language aimed at restricting Big Tech’s ability to launch stablecoins, arguing it doesn’t go far enough because it only establishes limits on public and not private companies.
“The draft bill still paves the way for Mark Zuckerberg, Jeff Bezos, and other Big Tech billionaires to pursue their own currencies – fueling conflicts of interest, undermining competition, threatening financial stability, and eroding financial privacy,” the memo reads.
The Big Tech language was one of several updates touted by crypto-friendly Democrats in a separate memo, in addition to stronger provisions on anti-money laundering, national security and consumer protection.
The contingent of crypto-friendly Democrats has previously split with some of their colleagues on the Senate Banking Committee, including the ranking member.
Sen. Elizabeth Warren (Mass.), the top Democrat on the panel, has long been skeptical of the crypto industry.
However, crypto-friendly and crypto-skeptical Senate Democrats banded together last week to vote down the GENIUS Act amid a dispute with Republicans.
After nearly two weeks of negotiations, Sen. Cynthia Lummis (R-Wyo.) said Thursday that she believed senators had reached a deal on “final language” and expected the bill to head to the floor again Monday.
Senate Majority Leader John Thune (R-S.D.) teed up the GENIUS Act for a procedural vote next week shortly after Lummis expressed confidence in the bill’s progress to The Hill.
As long as the bill maintains Republican support, it only needs seven Democrats to move forward.
