What You Need to Know

• Senator Ruben Gallego, along with eight fellow Democrats, expressed reluctance to support stablecoin legislation unless critical concerns are addressed.
• The delay in progressing the stablecoin bill could hinder the significantly vital market structure bill.
• U.S. President Donald Trump’s profitable ties to the crypto world are likely contributing to this legislative stalemate.

Senate Democrats are hesitant about advancing pivotal stablecoin legislation due to President Donald Trump’s growing personal gains from his crypto relationships. Over the weekend, Senator Ruben Gallego, representing Arizona and backed by $10 million from the Fairshake crypto super PAC, warned with a group of colleagues that they would not endorse the current version of the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS Act). This situation requires 60 votes to advance any legislation.

However, the significant concern for the crypto sector may stem from how this new contention affects upcoming market structure legislation, which has broader implications than the stablecoin bill. A source familiar with congressional affairs indicated to CoinDesk that while the stablecoin legislation should eventually pass, any slowdown in momentum could jeopardize progress on crucial market oversight regulations involving the SEC and CFTC.

Recent developments may have exacerbated Democratic apprehensions. Trump announced a dinner for major memecoin holders and a firm backed by his family declared intentions to use a stablecoin connection for a major investment. Reports suggest these ties could potentially earn Trump substantial profits.

Trump denied profiting from his crypto engagements in a recent interview, maintaining his commitment to the crypto sector as vital to U.S. interests.

Meanwhile, behind the scenes, Democrats have been vocal about holding back their support. Gallego’s statement, supported by Senators Mark Warner, Raphael Warnock, Lisa Blunt Rochester, Catherine Cortez Masto, Andy Kim, Ben Ray Luján, John Hickenlooper, and Adam Schiff, cautioned that absent regulations expose consumers to risks from exploitative practices. They highlighted that various critical issues must be resolved, further complicating the potential advances for proposed legislation.

For further insights on the ramifications and political motivations driving these legislative hurdles, please visit CoinDesk.