A group of U.S. Senate Democrats known for supporting the crypto industry has said they would oppose a Republican-led stablecoin bill if it goes on in its current form.
The move threatens to stop legislation that can establish the first US legislative framework for stablecoins, according to a May 3rd report from Politico.
According to the report, nine Senate Democrats in a joint statement said the bill “still has several questions to be resolved.” They warned that they would not support a procedural vote to promote the legislation unless changes are made.
Among the signatories were the Senators Ruben Gallego, Mark Warner, Lisa Blunt Rochester and Andy Kim – who had all previously supported the bill when it adopted through Senates Bank Committee in March.
The Bill introduced by Senator Bill Hagty is formally known as the guidance and establishment of the National Innovation for the American StableCecoin (Geni) Act.
Related: Fed’s Powell repeats support for stableecoin -legislation
Senate is preparing to vote on StableCOin Bill
The Senate is expected to begin the floor consideration of the bill in the coming days, with the first vote potentially taking place next week.
The bill has been advanced by the crypto industry as a landmark step towards legislative clarity. However, the Democrats’ about face reflect growing turmoil within the party.
Although audits were made of the bill after its committee’s approval to tackle democratic concerns, the legislators said the changes were coming to short. They called for stronger security measures related to money laundering, national security, foreign issuers and responsibility measures for non-compatible actors.
The statement was also signed by the Senators Raphael Warnock, Catherine Cortez Masto, Ben Ray Luján, John Hickenlooper and Adam Schiff.
Senator Kirsten Gillibrand and Senator Angela Alsobrooks were absent on the list that co-sponsored the bill with Hagty.
Despite their objections, the democratic senators emphasized their obligation to shape responsible crypto regulation. They allegedly said they “are eager to continue working with our colleagues to tackle these questions.”
Related: US banks are ‘free to start supporting Bitcoin’
Crypto needs a stableecoin bill
On April 27, Caitlin Long, founder and CEO of Custodia Bank, criticized the US Federal Reserve to quietly maintain an important anti-crypto policy that favors stable-issued stablecoins, despite relaxing crypto-partnership rules for banks.
Long explained that while Fed recently lifted four former crypto guidelines, a 27th of January 2023, the statement was left intact in coordination with the Biden administration.
According to Long Banks, the guide blocks from engaging directly with crypto assets and prohibits them from issuing stablecoins about permitted blockchains.
However, Long noted that when a federal stablecoin bill is allowed, it could override the Fed’s attitude. “Congress was to hurry,” she urged.
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