Senate’s Revised Stablecoin Draft Eases Democratic Concerns, Leaves Consumer Advocates Wanting

The U.S. Senate’s latest stablecoin legislation draft shows significant revisions aimed at appeasing Democratic lawmakers, though consumer protection groups remain unsatisfied. The bill, which cleared the Banking Committee with bipartisan support in March, faced Democratic pushback over potential conflicts with former President Trump’s crypto holdings and concerns about Big Tech issuers like Meta and X.

Negotiations have yielded concessions that proponents describe as "major victories" on key issues. The revised language notably avoids targeting Trump-related cryptocurrencies while adjusting its approach to technology firms seeking stablecoin issuance capabilities. Market participants await final language that could shape regulatory clarity for dollar-pegged tokens.