Senate leaders are gearing up for a vote this week on a new law aimed at establishing a framework for payment stability coins, with the hope that Senate Democrats who favor encryption will back the proposal.
Sources indicate that Republicans are planning to bring the legislation to a vote this Thursday.
However, nine Democratic senators who had previously supported the bill issued a statement on Saturday, expressing their inability to support the current version.
“We aim to approach this process constructively and with an open mind, but there are still significant issues that need to be resolved,” the senators stated.
They highlighted concerns around anti-money laundering, foreign issuers, national security, and the overall soundness of the financial system. They emphasized the need for stronger accountability measures for those who don’t comply with the law.
Among the dissenting voices are Senators Reuben Gallego (D-Ariz.), Mark Warner (D-Va.), Lisa Blunt Rochester (D-Del.), and Andy Kim (D-N.J.).
Gallego, a key member of the Digital Assets Subcommittee, insisted that this was not an unexpected shift by Democrats.
“The fact is that Democrats, including myself, have been negotiating with Republicans for weeks,” he wrote on social media. “They seem to expect us to accept the bill without consideration of our input. That’s not how we roll, and our statement makes it clear that we won’t let them steamroll us.”
A backlash emerged after Senate Majority Leader John Tune (R-D.) initiated a fast-tracking process for the bill on Thursday, catching many Democrats off guard.
An aide familiar with the discussions noted that this prompted a heated debate at a Democratic meeting that ended on the same day. Additionally, concerns were raised over a new crypto venture involving President Trump and his family.
Trump, who had previously pledged to make the U.S. a central hub for cryptocurrency during his campaign, has also expanded his crypto investments. Last week, World Liberty Financial, a company launched by Trump and his sons, announced plans for a $2 billion deal using its latest stablecoin, in collaboration with a company from the UAE.
Senator Elizabeth Warren (D-Mass.), the senior Democrat on the Senate Banking Committee, pointed to this deal while urging support for the Stablecoin Bill on Sunday. “Trump’s family’s stablecoin has skyrocketed to the seventh largest in the world, thanks to a questionable crypto deal with the UAE,” she remarked on social media.
In response, Representative Maxine Waters (D-Calif.), a leading member of the House Financial Services Committee, plans to halt Tuesday’s hearing on the Market Structure Act due to Republicans’ refusal to include provisions that would prevent profits from the crypto industry.
House Democrats are instead organizing their own hearings to look into Trump’s financial ties, including World Liberty Financial and his meme coins.
As Democratic backing for the Stablecoin legislation dwindles, it poses a risk to significant priorities for Republican lawmakers and the Trump administration.
