Democrats are offering new resistance to cryptography prioritized by the Trump administration, in opposition to Trump’s involvement in the industry, along with many other issues.
Their resistance exploded last weekend as nine Democrats led by Sen. Reuben Gallego (Arizona) issued an official statement opposed to the GOP-led Senate bill, which is likely to bring a major code victory for Trump and Republicans.
The bill establishes rules governing stubcoins. Stablecoins are fixed to other assets such as the US dollar.
Senate minority leader Chuck Schumer urged members last Thursday not to commit to voting for the Stubcoin bill, saying that leverage was needed to make changes, according to those familiar with the discussion.
Those familiar with the new Democrat opposition party, one of the major concerns for some is how the president and his family will benefit from legislation. For others, there are different challenges, from anti-money laundering issues to consumer protection.
US President Donald Trump of the Center will arrive at the White House digital asset summit on March 7th (Photo: Anna Moneymaker/Getty Images) ・Anna Money Maker via Getty Images
World Liberty Financial, a new crypto startup supported by President Trump and his sons, announced last month it plans to mint Stablecoin, which won its own US dollar in partnership with BITGO.
The Stablecoin, announced last week, was chosen as a way to pay for a $2 billion investment in Binance from state-owned Abu Dhabi investment company MGX.
Sen. Elizabeth Warren (D-Mass.) called for a $2 billion deal in X’s post last Thursday, saying it “smells like corruption,” and said the bill the lawmakers are considering would “make it easier for the president and his family to profit from their own stubcoins.”
The Senate is “preparing to turn green light grifts into green,” Warren said.
Due to a new democratic pushback, the first scheduled law vote on Thursday would fail if it was brought to the floor, far below the 60 votes needed to pass the entire Senate.
This comes after Senate Majority Leader John Tune began the process of promoting votes on the Stubcoin Act last Thursday.
US Senator Elizabeth Warren (D-MA). Reuters/Kevin Mohatt/File Photo ・Reuters/Reuters
There are many other issues Democrats are cited as issues now. According to Democrats, it includes new changes that claim Democrats will emit consumer protections and weaken money laundering safeguards.
They also do not like being exempt from existing ethical rules that prevent the president from profiting from ownership of certain assets.
“This is not a reversal from anywhere by DEMS,” Senator Gallego said in a post on Sunday afternoon. “The bill introduced for floor review based on a lot of progress we made didn’t include any other improvements we were sought,” he added.
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Democrats are seeking more stringent detention, including whether people working on anti-money laundering, foreign stubcoin issuers, and people close to government officials own or benefit from these assets.
It is unclear whether the parties will be able to resolve these issues in the coming weeks or whether the bill will die.
When asked about Sunday afternoon holdout, Trump said he didn’t know about it.
Senator Ruben Gallego, D-Ariz. (Bill Clark/CQ-Roll Call, Inc, Getty Images) ・Bill Clark via Getty Images
“Cryptocurrency is very important,” Trump said on the same occasion. “I’m very much in favor of cryptography because otherwise China would take over it,” he added.
Trump already shows his desire for the Senate to pass some sort of stubcoin law in the next three months.
At the first White House Crypto Summit in early March, Trump said he hoped lawmakers could get stable laws on their desks before the Congressional break that begins on August 5th.
There are two stubcoin bills currently circulating throughout the Congress.
The Senate bill, known as the Genius Act, was introduced by Senator Bill Hagerty (R-Tenn.) and has support from two Democrats, Kirsten Gillibrand (NY) and Angela Onclobrooks (MD.), with Republican Senators Tim Scott (SC) and Cynthia Lummis (Wyo.).
The hope for a holdout is that the bill looks like the House Stubcoin bill introduced by Rep. Maxine Waters.
Behind the scenes, lobbyists representing the US banking industry are also supporting the bill proposed by Waters.
These lobbyists are also trying to prevent the current draft of the Senate bill from opening any kind of loopholes that allow crypto companies to offer products like banks.
Their insecurities with genius are somewhat consistent with Democrats’ holdings about the need to suppress more strict money laundering. But their top priority is to prevent interest-bearing stubcoins from being issued by non-banks.
They specifically want language that prevents US Stablecoin publishers and intermediaries from providing interest to their customers, and language that doesn’t change how the Federal Reserve kicks out so-called master accounts.
Since moving to the White House, President Trump has embraced more favorable regulations on digital assets and has been financially involved in growing popularity through numerous ventures.
That combo is an unknown territory for the US president, scrutinizing it to inform a series of perceived conflicts of interest.
These ventures will announce the launch of his official memo coins and courtship top holders at private dinners and plans for his name Trump Media Technology Group (DJT) to announce a series of Crypto Holding ETFs to hold ETFs at Singapore-based digital asset exchange crypto.com.
David Hollerith is a senior reporter on Yahoo Finance, covering banking, crypto and other areas of finance.
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