Republicans are set to advance the GENIUS Act to a floor vote this Thursday, bypassing further negotiations, despite a significant reversal from Senate Democrats who once supported the bill. As reported by The Hill, the move comes amid escalating concerns over national security, money laundering, and ties between the Trump family and major crypto deals.
The GENIUS Act, designed to regulate payment-oriented stablecoins, originally drew bipartisan interest for its potential to bring legal clarity to the $150 billion stablecoin market. GOP leaders had positioned the bill as a strategic necessity to keep the U.S. competitive in blockchain innovation.
But tensions erupted after Senate Majority Leader John Thune pushed the bill forward under expedited rules, skipping additional committee markups and limiting time for revisions.
Democrats Slam Last-Minute Changes, Cite Risk of Crypto Abuse
In a public statement Saturday, nine Democrats withdrew their support, stating they had negotiated in good faith and expected key anti-money-laundering and security provisions to be included in the final draft. They now oppose the bill’s current form, warning that it leaves room for abuse and fails to address threats from foreign actors.
Sen. Ruben Gallego criticized the process on social media, writing, “We negotiated for weeks, and they gutted our progress. This isn’t what we agreed to.”
Further frustration came after many lawmakers reportedly saw the bill’s floor text only after it was made public.
Trump Family Crypto Deal Sparks Ethical Concerns
Democratic concerns were further fueled by the Trump family’s expanding involvement in crypto. World Liberty Financial, a Trump-affiliated venture, recently entered a $2 billion partnership with Binance via a UAE-backed deal involving a U.S. dollar-pegged stablecoin.
Sen. Elizabeth Warren cited the arrangement as a potential conflict of interest and called for a pause. “This bill cannot move forward while we ignore the elephant in the room,” she said, warning that regulatory frameworks must be vetted carefully to avoid enabling corruption or undue influence.
House Democrats have scheduled an oversight hearing to investigate Trump’s crypto initiatives, including meme coins and the World Liberty transaction, emphasizing the need for broader scrutiny before passing sweeping regulations.
The GENIUS Act, once seen as a potential milestone in crypto legislation, now faces an uphill battle. Without bipartisan consensus, its passage remains uncertain—and Republicans risk legislative failure if Thursday’s vote falls short.
