Senate Democrats Urge Retract Support for Stablecoin Bill

According to TheBlock on the 4th (local time), multiple Democratic senators, including Chuck Schumer and Elizabeth Warren, have internally urged to withdraw support for the stablecoin bill to gain more favorable conditions in negotiations with the Republican Party. This report came right after 9 Democratic senators expressed opposition to the current bill and put a brake on its processing. Among them were 4 senators who had previously supported passing the bill in the committee last month. The Republican side, who had been leading the bill's processing, was reportedly unable to hide their confusion at this reversal. Politico reported that Republican staff were "shocked" by the Democrats' sudden change of position. In particular, Schumer reportedly requested support reservation at a closed-door meeting on the 1st, pointing out that the bill's regulatory intensity was weak for global stablecoin issuers like Tether. Elizabeth Warren also raised concerns about the bill's timing and content during the meeting, discussing potential conflicts of interest related to Donald Trump's family's cryptocurrency businesses. Although the meeting was originally centered on other agendas, the stablecoin discussion became a major point of tension. Arizona Senator Ruben Gallego stated on social media that "this opposition is not a sudden change of heart" and that the bill "reverses previous progress and does not reflect the improvements we demanded". Gallego is one of the 9 senators who jointly issued an opposition statement. The GENIUS bill requires stablecoin issuers to maintain 100% reserves in high-liquidity assets like US dollars and short-term government bonds, disclose reserve details monthly, and undergo annual external audits for assets over $50 billion. Democratic senators argue that more national security provisions and anti-money laundering measures are needed.