Senate Democrats are balancing President Donald Trump's personal gains from his own crypto bond, so he is balking forward to the landmark's stable law.
Over the weekend, Sen. Ruben Galego, a Democrat who chose to represent Arizona with $10 million in support from Crypto Super PAC Fairshake, advanced the current version of the guide with eight colleagues, warning that he would not vote for US national innovation to establish stable national innovation in 2025 (Genius Act), stablecoin bill. The Senate requires 60 votes to advance in any law.
However, a major issue for the crypto industry may be the impact this new battle will have on future market structure laws. The Stablecoin Bill will ultimately have to sail through Congress. One person working with lawmakers and legislative aides told Coindesk, but an ongoing slowdown in momentum could threaten the bill. The Market Structure Act (a bill that the industry has been demanding for years) would cover a much broader range of activities than the Stablecoin bill.
Two recent announcements in particular may have raised concerns from Democrats, leading to an announcement this weekend. MGX's announcement, which is his dinner announcement for Mimecoin and top holders of Abu Dhabi investment firm MGX, will use the investment in Vinance using World Liberty Financial's Stablecoin, supported by Trump's family. Both suggest that Trump himself could personally benefit from hundreds of millions of dollars in songs, USA Today said.
Trump in an interview with Meet the Media over the weekend claimed he hadn't made a profit from the crypto venture.
“I'm not profiting from anything,” he said. “What I'm doing is starting this long before the election. I want crypto. I think crypto is important because if China doesn't, it's something that China does. It's very popular. It's very popular.
Gallego's announcement was made over the weekend, but Democrats have been worried behind the scenes for several days, with Minority Leader Sen. Chuck Schumer warning Democrats to withhold their support during last week's Caucus meeting, Coindesk confirmed. Axios was the first to report this rift.
One individual who spoke to Coindesk said he was worried about the fight over Trump's involvement with the code to elicit the legislative process for the Stubcoin bill, what Democrats need to vote comfortably to move the bill forward, and whether the situation would prevent the market structure bill from moving forward at all.
A statement from Galego, co-signed by Democrats Mark Warner, Rafael Warnock, Lisa Brant Rochester, Katherine Cortez Mast, Andy Kim, Ben Ray Luhan, John Hickenlooper and Adam Sifa, said lawmakers “are aware that the lack of regulations means there is no consumer.” law.
“However, there are still many issues with the current bill that need to be addressed, including adding stronger provisions, such as anti-money laundering, foreign issuers, national security, the security and soundness of our financial system, and maintaining accountability for those who do not meet the requirements of the law,” the statement said.
Gallego, Warner, Kim and Brantrochester previously joined Republicans and voted to advance the bill from the Senate Banking Committee.
Sen. Elizabeth Warren, who heads Democrats on the Senate Banking Committee, said in a post on a social media site that the Senate should not pass a bill that “promotes this type of corruption.”
“The Trump family's stubcoin has skyrocketed the seventh largest in the world due to a suspicious crypto deal with the United Arab Emirates.
She asked his office to investigate the MGX deal on Monday, writing a joint letter with fellow Democrat Jeffrey Merkley to represent the U.S. Government Ethics Office.
The momentum of stagnation is not limited to the Senate. Earlier on Monday, Rep. Maxine Waters, the House Financial Services Committee's leading DEM, told the committee chair he would block efforts to hold a joint hearing with the House Agriculture Committee addressing market structure issues.
“The majority of this is politics,” wrote Jaret Seiberg, a monetary policy analyst at TD Cowen, in a Monday memo to clients. He said Trump's personal interest in Crypto makes it difficult for Democrats to support the Stubcoin bill that regulates the business of his family. Still, he predicted it would still pass the Senate, but it may not be this week.
“The Crypto-lobby is politically strong and shows a willingness to devote considerable resources to making an impact in Washington,” Seberg said. “It's hard to see why Democrats will take on that fight when Democrats can take advantage of the key concessions from the GOP in the Stubcoin bill.”
Crypto industry lobbyists appear to be wary of announcements over the past few days. A joint statement released Monday urged lawmakers to begin debating the floor over the bill.
A statement signed by the retired CEO of the Blockchain Association, Jim, acting CEO of the Crypto Council of Innovation, and Cody Carbon, the new CEO of the Digital Room, said the true regulatory framework “supports stable recruitment and 'dollar control' in the digital economy.
“We honour the senators to vote in favor of allegations to consider genius behavior and take a step closer to enacting a bipartisan, ridiculous framework,” the statement said.
Another lobbying organisation, the National Venture Capital Association, was also overwhelmed by a statement that CEO Bobby Franklin called on the Senate to move the Stubcoin bill forward.
“US leadership in the digital economy relies on establishing a clear and consistent regulatory framework for stubcoins that promotes innovation, empowers entrepreneurs and helps build the next generation of financial technology,” the statement said. “The strong Stablecoin framework supports groundbreaking companies and supports venture capital industry efforts to strengthen America's global financial technology leadership.”
Read more: US Crypto Market Structure Legislation Announced by Congressmen
