Democrats change stance to oppose Senate crypto bill
The unexpected announcement arrives as the Senate prepares to start deliberations on the significant stablecoin bill in the next few days.
TroibNews 
A group of pro-crypto Senate Democrats announced their opposition on Saturday to GOP-led stablecoin legislation that some of them had previously supported, if it proceeds to the floor in its current form. This unexpected development could put the bill’s progression at risk.
Nine Democrats who had earlier endorsed industry-friendly crypto legislation issued a statement indicating that “the bill as it currently stands still has numerous issues that must be addressed.” They added they “would be unable to vote for cloture should the current version of the bill come to the floor.” The statement included four Democrats who backed the stablecoin bill when it was approved by the Senate Banking Committee in March: Sens. Ruben Gallego of Arizona, Mark Warner of Virginia, Lisa Blunt Rochester of Delaware, and Andy Kim of New Jersey.
This surprise announcement comes as the Senate is poised to begin discussions on the significant stablecoin bill in the coming days, with the first procedural vote anticipated as soon as next week. The legislation, requiring support from at least seven Democrats to succeed in the Senate, aims to establish the first-ever U.S. regulatory framework for stablecoin issuers, digital tokens pegged to various assets like the dollar.
Should the bill, championed by Sen. Bill Hagerty, pass, it would mark a historic lobbying victory for the crypto industry, which has sought legislation to legitimize digital assets and foster growth in the sector.
While an increasing number of Democrats have begun supporting industry-friendly crypto measures led by Republican lawmakers, entanglements involving the Trump family within the digital asset industry have complicated matters in recent months. Notably, a crypto firm established by the president's sons plans to launch a stablecoin, raising concerns about potential conflicts of interest.
Republicans had hoped that modifications made to the bill since its passage by the Banking Committee would facilitate a substantial bipartisan vote on the floor. Many of these changes were intended to attract Democratic support, and new language was incorporated to address several concerns raised in the Democrats’ Saturday statement. This shift could provide Democrats with leverage to demand additional concessions before the floor vote.
The lawmakers emphasized that the legislation requires “stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements.”
The statement also included signatures from Sens. Raphael Warnock of Georgia, Catherine Cortez Masto of Nevada, Ben Ray Luján of New Mexico, John Hickenlooper of Colorado, and Adam Schiff of California, alongside Gallego, Warner, Blunt Rochester, and Kim.
They expressed their willingness to collaborate with colleagues to resolve these issues, stating, “As stablecoins continue to grow in popularity, it is critical for Congress to work in a bipartisan fashion to create a regulatory framework that sets forth clear rules of the road. We recognize that the absence of regulation leaves consumers unprotected and vulnerable to predatory practices. We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made.”
Notably, the two Democrats co-sponsoring the stablecoin bill — Sen. Kirsten Gillibrand of New York and Angela Alsobrooks of Maryland — did not add their signatures to the statement.
In response to the Democrats' statement, Hagerty articulated that lawmakers “must advance legislation that enshrines American leadership in the digital asset space and protects the US dollar for centuries to come.”
"That time is now," he asserted. "We have a choice here. Move forward and make any remaining changes needed in a bipartisan way, or show that digital asset and crypto legislation remains a solely Republican issue."
Ian Smith for TROIB News
Nine Democrats who had earlier endorsed industry-friendly crypto legislation issued a statement indicating that “the bill as it currently stands still has numerous issues that must be addressed.” They added they “would be unable to vote for cloture should the current version of the bill come to the floor.” The statement included four Democrats who backed the stablecoin bill when it was approved by the Senate Banking Committee in March: Sens. Ruben Gallego of Arizona, Mark Warner of Virginia, Lisa Blunt Rochester of Delaware, and Andy Kim of New Jersey.
This surprise announcement comes as the Senate is poised to begin discussions on the significant stablecoin bill in the coming days, with the first procedural vote anticipated as soon as next week. The legislation, requiring support from at least seven Democrats to succeed in the Senate, aims to establish the first-ever U.S. regulatory framework for stablecoin issuers, digital tokens pegged to various assets like the dollar.
Should the bill, championed by Sen. Bill Hagerty, pass, it would mark a historic lobbying victory for the crypto industry, which has sought legislation to legitimize digital assets and foster growth in the sector.
While an increasing number of Democrats have begun supporting industry-friendly crypto measures led by Republican lawmakers, entanglements involving the Trump family within the digital asset industry have complicated matters in recent months. Notably, a crypto firm established by the president's sons plans to launch a stablecoin, raising concerns about potential conflicts of interest.
Republicans had hoped that modifications made to the bill since its passage by the Banking Committee would facilitate a substantial bipartisan vote on the floor. Many of these changes were intended to attract Democratic support, and new language was incorporated to address several concerns raised in the Democrats’ Saturday statement. This shift could provide Democrats with leverage to demand additional concessions before the floor vote.
The lawmakers emphasized that the legislation requires “stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements.”
The statement also included signatures from Sens. Raphael Warnock of Georgia, Catherine Cortez Masto of Nevada, Ben Ray Luján of New Mexico, John Hickenlooper of Colorado, and Adam Schiff of California, alongside Gallego, Warner, Blunt Rochester, and Kim.
They expressed their willingness to collaborate with colleagues to resolve these issues, stating, “As stablecoins continue to grow in popularity, it is critical for Congress to work in a bipartisan fashion to create a regulatory framework that sets forth clear rules of the road. We recognize that the absence of regulation leaves consumers unprotected and vulnerable to predatory practices. We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made.”
Notably, the two Democrats co-sponsoring the stablecoin bill — Sen. Kirsten Gillibrand of New York and Angela Alsobrooks of Maryland — did not add their signatures to the statement.
In response to the Democrats' statement, Hagerty articulated that lawmakers “must advance legislation that enshrines American leadership in the digital asset space and protects the US dollar for centuries to come.”
"That time is now," he asserted. "We have a choice here. Move forward and make any remaining changes needed in a bipartisan way, or show that digital asset and crypto legislation remains a solely Republican issue."
Ian Smith for TROIB News
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