Amid Washington’s latest partisan clash, a bipartisan Senate duo revived a long-stalled stablecoin bill this week, seeking to force a floor vote before the Memorial Day recess, well before President Trump’s crypto dealings could derail the effort.
The renewed effort is being led by Republican Senator Bill Hagerty of Tennessee and Democratic Senator Angela Alsobrooks of Maryland.
The bill’s progress follows weeks of political tension. Progressive Democrats raised concerns over Trump’s crypto holdings, which include several blockchain-based ventures launched since his resumption of office.
Stablecoin Regulatory Framework Under Bipartisan Review
According to a Bloomberg report, Hagerty confirmed that Senate staff from both parties have continued discussions on the bill’s final language.
He expressed optimism that Democrats would support a procedural vote this month, noting that the Senate’s legislative calendar will soon pivot to a Republican-backed tax and spending agenda.
The bill, named the GENIUS Act, would define permissible issuers, impose strict reserve requirements, and task federal regulators with oversight responsibilities.
While the draft has not been publicly released, the effort builds on proposals circulated during previous congressional sessions.
Lawmakers involved in the current negotiations have indicated that the framework would require stablecoin issuers to hold full reserves in cash or short-term Treasury securities, subject to regular audits and compliance reporting.
A version of the legislation was previously advanced through the Senate Banking Committee, earning support from Republicans and moderate Democrats. Alsobrooks, the lead Democratic co-sponsor, reiterated that bipartisan staff work remains ongoing and that talks have continued despite last week’s failed procedural vote.
Democratic votes are needed for the bill’s advancement, as Senate rules generally require 60 votes to proceed to final passage.
Trump’s Crypto Ties Spark Political Tensions, Fueling Partisan Divide in Washington
President Donald Trump’s growing involvement in the crypto industry intensifies political tensions, as Democrats push for new restrictions and Republicans push back.
World Liberty Financial, a Trump family crypto venture recently backed by a multibillion-dollar investment from an Abu Dhabi-based firm, is at the center of the controversy. This announcement triggered an immediate backlash from Senate Democrats.
Senators Elizabeth Warren and Jeff Merkley have introduced legislation to prevent current and former public officials from profiting from digital assets during or after their time in office.
They argue that Trump’s activities raise serious ethical concerns, with Warren and Merkley warning of “mind-boggling” opportunities for grift involving foreign entities and crypto firms like Binance.
The debate has created friction within Congress. A bipartisan group of crypto-focused senators, including Tim Scott (R-S.C.), Cynthia Lummis (R-Wyo.), Kirsten Gillibrand (D-N.Y.), and Mark Warner (D-Va.), held closed-door negotiations this week to hash out new regulations.
GOP Senator Bill Hagerty led talks with Democrats who previously supported crypto legislation but later withdrew over concerns about anti-money laundering, national security, and oversight of foreign issuers.
The shift in Democratic support follows growing scrutiny of Trump’s crypto activities and suggests a broader push for tighter guardrails on digital asset use by public officials.
Senator Chris Murphy (D-Conn.) and Rep. Sam Liccardo (D-Calif.) are also working on a separate bill to restrict meme coin activity linked to elected officials.
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