A group of nine Democratic senators has announced that they would withdraw their support from the United States’s historic legislation unless modifications are made to the bill.
In a joint declaration published on May 3, senators noted that there were several problems with the current version of the Stable Stable Bill known as the National Innovation Act for Stablescoins (Engineering). The senators noted:
“Although we are impatient to continue working with our colleagues to resolve these questions, we could not vote for the Clot if the current version of the bill will arrive on the ground.”
The declaration was signed by senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff. Surprisingly, the Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim, who all supported the bill when he adopted the Senate banking committee in March, was also one of the signatories.
However, it should be noted that the two Democrats of the Senate Coparran the law on genius alongside the main sponsor of the republican senator Bill Hagerty – Kirsten Gillibrand and Angela Alsobrooks – did not sign the declaration.
The Democrats of the Senate want more strict regulations under the Act respecting engineering
In their declaration, the Democrats of the Senate noted that it was “essential for Congress to work in a bipartite manner” to establish clear rules and directives for stablecoins. The absence of such regulations leaves consumers “unprotected and vulnerable”, they said.
However, they are determined to remember the support of the bill, unless revisions are made. They added:
“We have addressed this process constructively and with an open mind, understanding that additional improvements to the bill would be made.”
The Democrats of the Senate believe that authentic law needs “stronger provisions on money laundering, foreign issuers, national security, preservation of the security and solidity of our financial system and the responsibility of those who do not meet the requirements of the law.”
It should be noted that these nine Senate Democrats are not the only opposite to the bill. Senator Elizabeth Warren, one of the firmer criticisms of the bill, warned that the bill could “Green Green Technology and other conglomerates to issue their own stabblecoins”.
In a letter last month, a group of 20 community banking organizations also expressed their objections, arguing that the bill could move traditional deposits and expose the financial system to new vulnerabilities.
Everything about the act of genius
Hagerty, who is the author of the Genius Act, presented the bill on February 4, 2025. The bill aims to provide a regulatory framework for American payment stables. The adoption of the law on engineering will therefore be the first step in establishing the complete regulation of cryptography in the United States
Under the proposed engineering bill, stablecoin issuers will have to ensure that each token issued is supported 1: 1 by US dollars, insured bank deposits or short -term cash bills. Stablecoin transmitters will also be able to choose between federal surveillance under the office of the currency controller (OCC) and supervision at the state level.
The senatoric banking committee adopted the law on engineering in March with a vote of 18-6. Since then, the Republicans have made changes to the bill, in the hope of winning democrats, according to a politico report. In fact, many of the changes concerned the questions raised by the Democrats of the Senate in their statement on Saturday.
The Republicans were assured of bipartite support for the bill, so much so that the head of the majority of the Senate, John Thune, officially moved to accelerate the bill earlier this week. The Senate Republicans hoped to push the law on genius for a ground vote by the end of May.
According to Politico, the first procedural vote for the bill is expected to be next week. However, the declaration of the Democrats of the Senate is likely to put a point of view in the plan of the Republicans, while giving them more leverage to extract more concessions.
The bill requires the support of at least seven democrats to adopt the Senate.
Senator Hagerty responds to the Declaration of Democrats
Responding to the declaration published by the Democrats of the Senate, Hagety said it was time for the United States to advance the legislation which will ensure its leadership in the space of digital assets and will protect the US dollar “for centuries to come”. He added:
“We have the choice here. Advancing and making the remaining changes necessary in the bipartite manner, or show that digital assets and cryptographic legislation remain a only republican problem. ”
