Regarding the negative development of the American encryption industry, the highly expected Stablecoins legislation in the US Senate has failed after not obtaining adequate support from Democrats in the Senate. Several members of the Democratic Republican Republicans criticized for their “party policy above politics”.
Democrats prevent the Stablecoins Bill
On Thursday, the National Innovation and Establishment Act of the Stablecoins Law (Genus) failed to pass a thrombocytwas vote in the US Senate after many legislators withdrew their support last week.
like I mentioned Posted by Reuters, 49 Senate members voted only to strengthen the bill, less than 60 votes required to end the debate on legislation. It is worth noting that two Republican Senators voted against the progress of the bill along with the Democrats.
In February, American Senator Bill Hajari introduced a genius law to develop a working framework to allow symbols such as USDT and USDC to decrease under federal reserve rules.
The draft law, which was sponsored by Senator Tim Scott, Cenathia Lomes, Kirsten Gilbrand, and Angela Aleluxus, will create a “safe and supportive regulatory framework that will unleash innovation and enhance the president’s mission to make America the global capital of Kurf.”
Stablecoins legislation has been an effort by the two parties to increase organizational clarity after many Democrats have shown support in the past few months. In addition, the draft law has passed through various amendments to address the concerns of the Senate members, including strict requirements for Stablecoin and Anti -Money Laundering Affairs (AML).
However, ten Senate Democrats expressed other concerns about the revised version of the draft law on May 3, and according to what many legislators were chosen. Among the critics, four Democrats who previously supported the law signed the opposition statement.
The legislators claimed that the draft law deleted the basic AML guarantees and national security and has mysterious regulations that could expose the encryption markets to exploit.
Likewise, Senator Elizabeth Warren urged Congress to reject the law of the genius because it could pave the way because of “corruption of encryption”. On May 4, the encoding legislator claimed that the Trump family could benefit from the Stablecoin Liberty Financial deal with MGX, a company based in the United Arab Emirates.
The deal includes an investment of two billion dollars connected to Binance and WLFI’s Stablecoin. Warren stressed that the Senate should not approve the encryption bill “to enable this type of corruption.”
American Senate members call for “political games”
One of the sponsors of the draft law, Chairman of the Senate Banking Committee, Tim Scott, The name Outside the Democrats, “playing politics with party legislation”. Speaking in the Senate Hall on May 8, Scott Democrats in the Senate was accused of placing party policy above politics and innovation.
It should have been a historic day for the Americans (…) to see their financial system democratic (…). Instead, we have seen a disappointing show for political games that place party policy above politics and obstructing innovation.
He stressed that the genius law was an achievement from the two parties in the Senate Banking Committee, adding that the transformation was not driven by a change in the “draft law”. He claimed that failure was not a vote against legislation, but rather a vote against President Trump and his legislative agenda.
Senator Lomes also Express She stated her disappointment on X: “Do not make mistakes, digital origins are the future, and America must lead the road,” adding that “it is important to continue to move the legislation of digital assets forward that maintains America’s dominance of the dollar and makes America the coding capital in the world.”
Meanwhile, Treasury Secretary Scott Beesen Argue The world needs American leadership for Stablecoins and other digital assets to flourish. The Senate criticized its loss “an opportunity to provide this leadership” by passing the bill.
“Without it, Stablecoins will undergo a group of state regulations instead of a more suitable federal framework for growth and competitiveness. The world is watching while American lawmakers face their thumb. Senate members who voted in favor of Stonewall Us International today.
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