The U.S. Senate’s struggle with stablecoin legislation hit a snag recently, but according to Cody Carbone, CEO of the blockchain advocacy group Digital Chamber, it’s merely a fleeting obstacle. Carbone, addressing attendees at Consensus 2025, expressed confidence that the Guiding and Establishing National Innovation in U.S. Stablecoins of 2025 (GENIUS Act) will soon emerge victorious, highlighting its significance in preserving the U.S. dollar’s dominance on the world stage.
A Bump in the Road
The GENIUS Act, seen as a pivotal regulatory framework, stumbled during a procedural vote on May 8, when several Democratic senators withdrew their support. Their concerns stemmed from former President Donald Trump’s entanglement with cryptocurrencies, which they argue raises ethical questions. Paul Grewal, Coinbase’s chief legal officer, echoed these sentiments, noting that Trump’s ventures into the memecoin market and NFTs have muddied the regulatory waters.
Despite this political quagmire, Carbone remains optimistic. “These things never move as quickly as we want them to move,” he remarked. But he stressed that Congress has operated with surprising speed, leaving him hopeful for a resolution in the coming weeks. His belief underscores the bipartisan appeal of solidifying the U.S. dollar’s global hegemony through stablecoin regulation. For more on the Senate’s recent actions, see U.S. Senate Moves Toward Action on Stablecoin Bill.
Political Crossfire
The legislative dance is not without its drama. Republican Senator Tim Scott accused Democratic lawmakers of using partisan tactics to thwart Trump’s digital asset agenda. He contends that the bill’s failure is not due to ethical concerns but rather a calculated move to curb Trump’s influence in shaping crypto policy.
Interestingly, the latest iteration of the bill has stripped all references to the Trump family—a strategic maneuver to garner bipartisan support. Industry insiders speculate that this could pave the way for the bill’s passage by the end of May, aligning with Carbone’s optimistic timeline.
The Stakes for Crypto Markets
For the cryptocurrency market, the stakes are high. Passing the GENIUS Act would mark a significant shift towards regulatory clarity, potentially invigorating a market that thrives on stability and investor confidence. Failure to pass before the 2026 midterm elections, however, could lead to a less favorable regulatory climate and unsettle the market’s delicate balance. This aligns with broader discussions in Congress, as detailed in U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer.
As negotiations continue behind closed doors, the crypto community watches with bated breath. The outcome could redefine stablecoin dynamics and set a precedent for future digital asset legislation. Yet, with political intricacies at play, the path forward is anything but straightforward.
The unfolding saga raises broader questions about the intersection of politics and digital innovation. Can the regulatory framework keep pace with rapid technological advancements? And will bipartisan cooperation prevail in the face of entrenched political rivalries?
As the U.S. Senate inches towards a decision, the crypto world remains on edge, keenly aware that the resolution—or lack thereof—could have far-reaching implications. The coming weeks promise to be decisive, as policymakers grapple with the delicate task of shaping the future of stablecoins and, by extension, the broader cryptocurrency landscape.
Source
This article is based on: US Senate will pass Stablecoin bill — Digital Chamber chief
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
