The project, known as the Genius Law (Guiding and Indestiventivent national Innovation for US Stablecoins Act), was blocked today in the US Senate, with Democrats claiming that there is a lack of sufficient measures to prevent corruption, particularly in relation to President Donald Trump’s commercial interests in digital assets.
Votes that ended between 48 and 49 were marked A key setback for the cryptocurrency industry According to what was sent through the Senate Banking Committee’s platform, he was looking for a federal regulatory framework for stubcoin.
The law regulated stubcoin transmitters and assets supporting these digital currencies, consolidating industry legitimacy within the US financial system. But Democrats backed by Republican Sens. Rand Paul (Kentucky) and Josh Hawley (Missouri) stopped him from moving forward.
Opposition leader Sen. Elizabeth Warren (D-Massachusetts) has denounced the project that promoted Trump’s “corrupted plans,” and he will actively promote his memokine Trump and offer exclusive dinners to 200 major buyers on May 22nd.
“The opportunities for corruption are enormous,” Warren said a few days ago. «Trump’s business partner is incarcerated and seeks pardon. Countries wanting tariff reductions can come with it through treatment and stable ». Warren also criticized the lack of restrictions in the Genius Act to prevent the president from looking at digital assets during his mission.
«Trump Disorder Syndrome»
Tim Scott, chairman of the Senate Banking Committee;
In a statement, Scott said: “It was a vote on President Trump and his legislative agenda, a vote to prevent Trump from winning in the digital assets sector.
Despite initial support from groups of DesPriscicon Democrats, including Senators Mark Warner (Va.) and Ruben Gallego (Arizona). The law lost support After revelations about Trump’s financial interests and his family, it could be billions of dollars through their company World Liberty Financial.
Democrats They tried to negotiate until the last moment to include stricter measuresincluding banning the president from benefiting from cryptocurrency, according to what was announced a few days before Cryptootics, which stated that there was no agreement with the Republican Party.
On his part, Gallego denied that his opposition was motivated by Trump’s participation, and he Concerns about national security and financial protection. «We are not pressuring the president to ban cryptocurrency. He admitted that these proposals complicated negotiations, but he said.
The genius law bloc reflects the deep division of the Senate over the role of cryptocurrency in the economy. The industry is trying to establish itself as a legitimate pillar of the financial system, but charges of conflicts of interest and corruption have increased scrutiny.
Meanwhile, without a clear regulatory framework, there is still ambiguity about the legality and future of US cryptocurrencies.