Stablecoin bill in jeopardy as Senate Dems withdraw support

A group of nine Senate Democrats who previously supported Crypto’s user -friendly legislation is now threatening to derail a historic Stablecoin bill, signaling the deepening of divisions on how the rapidly growing digital asset sector should be regulated.

In a surprise declaration on Saturday first reported By politico, the senators said that they would not support the bill led by the GOP “in its current form” if it reached the Senate soil, citing a range of unresolved concerns.

Their requirements for changes are focused on several key areas: backups to prevent illicit financial flows, stricter rules on foreign stall providers, national security, stronger guarantees than staboins will not compromise the security and solidity of existing financial infrastructure and more severe penalties on non -compliant players.

This decision comes only a few days before the House holds a procedural vote on the legislation, which aims to create the first federal framework for stable issuers – digital tokens generally fixed to the US dollar or other assets.

Who signed? Who blocked?

The democratic block, which includes the senses. Ruben Gallego (Arizona), Mark Warner (Virginie), Lisa Blunt Rochester (del.) And Andy Kim (NJ) – who have all voted in favor of the bill when he adopted the Senate Bank Committee in March – now say that the legislation has still voted “has many problems that must be discussed”.

The letter, also signed by Sens. Raphael Warnock (Ga.), Catherine Cortez Masto (Nev.), Ben Ray Luján (NM), John Hickenlooper (Colo) and Adam Schiff (California), underlined a continuous desire to negotiate. “We are impatient to continue working with our colleagues to resolve these questions,” wrote the senators. “While the stablecoins continue to gain popularity, it is essential that the congress works in a bipartite manner to create a regulatory framework which establishes clear rules of the road.”

In particular absent from the declaration, the two Democratic co-sponsors of the bill: Senator Kirsten Gillibrand (NY) and Senator Angela Alsobrooks (MD.).

Erect

The main sponsor of the bill, Senator Bill Hagerty (R-Tenn.), Responded to the hindsight with a warning and a challenge.

“We have the choice here. Advance and make the necessary remaining changes in a bipartite way, or show that digital assets and cryptographic legislation remain a only republican problem,” he said, stressing the need to consolidate American domination in the space of digital assets.

The defection adds a new layer of complexity to an already controversial process, especially since the growing participation of the Trump family in digital active space – including plans for A new adventure of Stablecoin – has injected new political sensitivities into the debate.

The bill is now suspended in balance, Democrats can hold the leverage to reshape the key provisions – or block one of the most important regulatory breakthroughs in the crypto industry to date.