What started as a promising effort to apply transparent rules on Crypto and Stablecoins has faced seriousness roadblock.
On May 4, 2025, ten American Senate members swinging against the revised version of the “Genius Law”, saying that it may harm more than benefit. Work, according to X post By Crypto Eleanor Terrett, a lot of guard was caught, especially because some individuals in the list supported the draft law just weeks ago.
Among the opposition critics are four Democrats – Robin Galligo, Mark Warner, Marilyn Strickland Kim, and Lisa Planet Rothschest – who were supporting the bill in March in the hearing of the Senate Banking Committee.
NEW: Senator @Rubengallego Nine other Senate members just issued a joint statement regarding the updated text of the genius law issued last week, saying they could not support the bill in its current form. The group notes several concerns, including insufficient … pic.twitter.com/876m4wcvda
Eleanorterrett May 3, 2025
Their change adds a new weight to the installation concerns, and the proposed rules have the ability to undermine Money laundering Protection and financial stability at risk. Angela Olsoprox, a sponsorship of the draft law since its inception, refused to sign the opposition speech.
Senator warning bells on national security and AML gaps
From the joint statement issued by the members of the Senate, the draft draft law deletes the most basic guarantees. Their concerns are the most prominent regarding national security and the weak presence to protect the anti -money laundering (AML). They also warned of the mysterious regulations that may expose the encryption markets to exploit.
Legislation, entitled “Directing and Create National Innovation for us Stablecoins Law“It was proposed in February 2025. Supporters said it would allow the United States to remain competitive in financial technology without endangering consumers. But this last reaction is an indication of legislators who are not all on the same page when it comes to“ safe. ”
The encryption investors left in the dark again?
The reverse reaction adds more inability to predict to the already volatile encryption market. Just one day before the Senate members issued their statement, the new language was revealed in the draft law. Traders and investors who were waiting for clarity are now left waiting again. If the legislators cannot compensate for their minds over the essence of the bill, this may be months before the signing of any version.
Image: The Shib Daily
This type of delay can be harmful. Stablecoins is linked to the payment of US dollars and often works as a resort in times of turbulent fluctuations. Without a clear direction from legislators, sheep exchanges and developers may be reluctant to develop or expand within the United States.
The reverse reaction is noticeable because it happens because the Senate is trying to rush to the draft law – and since news organizations are investigating US President Donald Trump encryption projects And the possible links that involve his relatives.
Artificial intelligence projects and Blockchain can feel heat
Among the objectives of the draft law, stimulates innovation as Blockchain intersects and artificial intelligence. For this reason, the opposition from the Senate members also caused eyebrows in the technology community as well.
The symbols that support artificial intelligence that were created on Blockchain can be affected indirectly if money and policy support become soaked in political rigors in Washington.
Distinctive image from BitWave, the tradingvief chart
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