Senate Prepares Key Vote on Trump-Backed Stablecoin Bill

The U.S. Senate is set to hold a pivotal procedural vote on Wednesday regarding stablecoin legislation endorsed by both the cryptocurrency industry and former President Donald Trump. Senate Majority Leader John Thune has spearheaded the effort, which requires 60 votes to advance, potentially fast-tracking the bipartisan bill into law.

Recent revisions to the bill have garnered support from crypto-friendly Democratic senators, including Angela Alsobrooks and Mark Warner. The legislation aims to establish regulatory frameworks for dollar-pegged tokens used in payments, mandating that stablecoins be backed by reserves held in short-term investments under federal or state oversight.

Debate has intensified as progressive Democrats raise concerns over potential financial system risks and the lack of safeguards against criminal misuse. Critics also highlight Trump's personal stake in cryptocurrency ventures as a conflict of interest. Meanwhile, Thune's push to limit debate signals a strategic MOVE to incorporate provisions fostering competition in credit card processing, targeting dominant players like Visa and Mastercard.