Pro-Crypto Democrats Withdraw Support for U.S. Stablecoin Bill, Delaying Regulation

A group of nine Democratic Senators has threatened to withdraw support for the GENIUS Act, a landmark stablecoin bill, unless significant changes are made. The legislators cited unresolved issues in the current draft, signaling potential delays in U.S. stablecoin regulation.

The bipartisan push for crypto-friendly legislation faces headwinds as key Democrats including Senators Warnock, Cortez Masto, and Schiff publicly oppose the bill’s current form. Their joint statement emphasized an inability to support cloture on the existing version, creating uncertainty for market participants.

This development comes at a critical juncture for stablecoin policy, with industry participants awaiting clear regulatory frameworks. The political stalemate may temporarily preserve the status quo but risks prolonging regulatory ambiguity for dollar-pegged digital assets.