Key Takeaways

• Supporters of the proposed stablecoin bill are optimistic about its revival, with indications it may be reconsidered in the Senate shortly.
• Some Democrats have raised concerns about connections to President Donald Trump’s cryptocurrency businesses, but the current iteration doesn’t address these directly.

Overview

After facing recent challenges, the U.S. Senate is again attempting to advance legislation aimed at regulating stablecoin issuers. New discussions and amendments suggest that procedural action could occur soon, potentially as early as Thursday.

The stablecoin bill’s momentum stalled last week when Democrats voiced objections focused on Trump’s involvement in crypto. However, ongoing negotiations have reportedly brought the legislators close to a consensus on the latest revisions of the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act. This act seeks to implement a federal framework for cryptocurrencies that are linked to stable values, such as Tether’s USDT and Circle’s USDC, with its counterpart finding its way through the House.

Notably, the Senate Banking Committee advanced an earlier version of the bill with bipartisan support, fostering expectations it would face minimal resistance in the Senate. Nevertheless, an updated version met hurdles leading to its current state of uncertainty, wherein a cloture motion failed due to the opposition of every Democrat and two Republicans.

Concerns from Democrats revolve around Trump’s activities in the crypto space, particularly related to a stake in Binance purchased using a stablecoin connected to Trump’s business interests. Nevertheless, the expected revisions of the bill won’t likely include measures addressing these conflicts directly, as pointed out by Senator Gillibrand during a recent event.

“This bill does have some ethics requirements that I think are really strong and very good, but it’s not an ethics bill per se.”

Senator Lummis emphasized the need to focus on the overarching goal of creating a comprehensive regulatory framework that supports the industry without being sidetracked by these issues.

At a recent conference, Bo Hines commented on the ongoing discussions, hinting at a positive trajectory for the upcoming vote.

“Negotiations are ongoing, and we shall see how things proceed.”

Overall, the next steps will involve procedural actions aimed at granting lawmakers additional time to fine-tune the details of the bill.