U.S. Stablecoin Legislation Stalled: Trump’s Involvement in Cryptocurrency Triggers Bipartisan Consensus Breakdown

Table of Contents

Bill Imperfect, Bipartisan Consensus Broken

Stablecoin Bill in the United States Temporarily Shelved

“GENIUS Act” Full of Uncertainties

Bipartisan Consensus Broken

In this vote, including Senate Majority Leader John Thune, Josh Hawley, and Rand Paul, Republicans all cast dissenting votes.

John Thune stated that he changed his position to leave room for the bill to be reintroduced in the future. He also pointed out that the bill had been revised six times in response to Democratic opinions and was puzzled by the lack of support.

On the other hand, several Democratic lawmakers criticized that the bill text was incomplete, lacking clear regulations for foreign stablecoin issuers, and not fully incorporating anti-money laundering mechanisms. Senator Mark Warner publicly stated:

“I cannot in good conscience ask my colleagues to support this bill when the text is not finalized.”

The Democratic Party’s concerns about the stablecoin bill are not only about the content of the bill, but also closely related to recent actions by Trump and his family in the cryptocurrency field. Trump and his wife Melania recently launched their own meme coin and also supported the establishment of the stablecoin company “World Liberty Financial.”

In addition, Trump held a cryptocurrency fundraising dinner this week with a seat costing up to $1.5 million, raising questions about conflicts of interest. Democratic House member Maxine Waters even boycotted a cryptocurrency policy hearing held jointly with the Agriculture Committee, bluntly stating that Trump, as both a cryptocurrency owner and regulator, raises doubts about administrative neutrality.

The “GENIUS Act” is considered a significant bill that can provide regulatory clarity to the cryptocurrency industry. The bill requires all stablecoin issuers to hold 100% US dollars or equivalent liquid assets as reserves, and projects with a market value exceeding $500 billion must undergo annual audits. The draft also prohibits foreign companies from directly issuing stablecoins in the US, but allows them to circulate in the secondary market, and gives the US Treasury the power to combat violators.

Although the bill is currently on hold, Republican leaders have left open the possibility of reintroducing it in the future. With Trump’s high-profile involvement in cryptocurrency assets and the declining trust between the two parties, whether the “GENIUS Act” can resolve disputes and gain consensus will be a key indicator affecting the US cryptocurrency regulatory direction. Despite some bipartisan support for the bill, defections within the Republican Party, coupled with Democratic opposition, have hindered its progress. Although negotiations are still ongoing and a revised version may be introduced, the future of the bill remains uncertain given the current situation.