GENIUS Stablecoin Bill Faces New Controversy, Delay

The bipartisan GENIUS Act, intended to create a federal regulatory framework for stablecoins in the U.S., faces new hurdles as nine Senate Democrats have withdrawn support, citing insufficient anti-money laundering, national security, and consumer protection measures. These senators have threatened to filibuster the bill unless major revisions are made, arguing the current draft fails to adequately protect the financial system and address risks posed by foreign stablecoin issuers. The debate is further complicated by controversy over a Trump-linked stablecoin's $2 billion deal with a UAE-backed fund, which has raised concerns about conflicts of interest and financial impropriety. While Republican backers and some Democrats, including Sen. Kirsten Gillibrand, still support the bill, Senate Majority Leader Chuck Schumer has advocated for caution and further amendments. The bill's potential failure would mark a significant setback for the crypto industry, prolonging uncertainty for investors and the digital assets market. Lawmakers remain divided as negotiations continue over possible changes.