U.S. Bipartisan Efforts to Revive Stablecoin Legislation Aim for Passage Before Recess

According to Bloomberg reports, bipartisan U.S. senators are striving to revive a stablecoin legislation supported by the cryptocurrency industry, which previously faced obstacles following public attention and controversy surrounding former President Donald Trump’s involvement in various cryptocurrency ventures.

The U.S. Senate Committee on Banking, Housing, and Urban Affairs (referred to as the Banking Committee) passed a stablecoin regulatory bill titled the “Guidance and Establishment of the American Stablecoin National Innovation Act” (GENIUS Act) in March of this year. However, it failed to advance to a final vote last week, with a 48 to 49 vote against terminating the debate process.

The bill’s primary sponsor, Republican Senator Bill Hagerty, stated in an interview with Congress that bipartisan staff members are continuing to advance the bill’s content. Given that the Senate will soon shift its focus to Republican-led tax and spending legislation, he hopes that Democrats will agree to pass the bill before the Memorial Day recess.

Progressive Democrats, including Elizabeth Warren and Jeff Merkley, are leading efforts to prohibit Trump and other officials from profiting from cryptocurrency companies during their tenure. However, these proposals have been firmly rejected by Republicans. Other Democrats, including Senate Majority Leader Chuck Schumer, have expressed frustration over the lack of a public text that reflects bipartisan compromise.

The Democratic primary sponsor of the bill, Angela Alsobrooks, also indicated that senators have indeed been pushing for the bill’s progress. Alsobrooks and four other Democrats on the Banking Committee supported the legislation, and more cryptocurrency-friendly Democrats actively negotiated related content before the procedural vote failure last week. Since most bills in the Senate require 60 votes to pass, Democratic support is crucial.