Republicans reportedly plan to force a vote on the GENIUS Act this Thursday even as Senate Democrats withdraw their support for the stablecoin framework, The Hill reported Monday.
The legislation would establish federal oversight for payment-focused stablecoins and create standards aimed at promoting safety and transparency in digital asset markets.
Initially, GOP leaders argued that codifying clear rules would encourage innovation and help the US maintain its edge over rivals in the burgeoning crypto sector.
Fast-Track Move on GENIUS Triggers Democratic Withdrawal
They moved quickly after Senate Majority Leader John Thune launched a fast-track process last week to tee up the floor text without further committee revisions.
However, nine Democrats who once backed the bill announced on Saturday that they could not vote for its current form.
“We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made,” they said.
They cited weak anti-money-laundering measures among their chief concerns and insufficient safeguards against foreign interference and national security risks.
Floor Text Surprise Adds to Democratic Discontent
Moreover, key senators who advanced the measure in March faulted leadership for stripping out negotiated improvements. Sen. Ruben Gallego wrote on X that Democrats “were trying to negotiate with the Republicans for weeks.” He added that the version heading to the floor “back-pedaled on a lot of the progress we made.”
Meanwhile, Democratic lawmakers complained that they saw the floor text for the first time when it went public.
Critics Say Trump’s Crypto Ties Warrant Deliberation
Next, critics flagged new crypto ventures by former President Trump and his family. They argued these deals warranted a slowdown. World Liberty Financial unveiled a proposed $2b transaction with Binance that would use its own stablecoin.
Sen. Elizabeth Warren referenced this deal, while urging colleagues to delay the bill. She warned “the Trump family stablecoin surged to seventh largest in the world because of a shady crypto deal with the United Arab Emirates.”
In response, House Democrats scheduled a separate hearing to examine Trump’s crypto activities, including his meme coin and the World Liberty arrangement. They argue that rushing a broad regulatory framework without addressing potential conflicts could open the door to corruption.
As Democratic support erodes, the GENIUS Act’s prospects become increasingly uncertain. Republicans and the White House had aimed to secure stablecoin and trading-structure reforms by August. Now they face the risk of postponement or significant rewrites if the floor vote fails to win bipartisan backing.
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