Senate Democrats Rally Against Crypto Bill Amid Concerns Over Trump's Ties to the Industry

Senate Democrats are rallying against the GENIUS Act, a significant cryptocurrency regulation bill. This bill aims to establish a regulatory framework for stablecoins but faces criticism linked to President Trump's business ties. Democratic backing has diminished due to worries surrounding Trump's family's involvement in crypto ventures.

The Controversy Around the GENIUS Act

The bill, known as the GENIUS Act, would create a regulatory framework for stablecoins, a type of cryptocurrency tied to the value of an asset like the U.S. dollar. It advanced out of the Senate Banking Committee in March with bipartisan backing, but has since bled Democratic support amid concerns about President Trump and his family's business ventures involving cryptocurrency.

Significant Developments

• The bill passed through the committee weeks before the announcement earlier this month that an Abu Dhabi-backed firm will invest billions of dollars in a Trump family-linked crypto firm, World Liberty Financial.
• The deal involves the firm buying $2 billion worth of a stablecoin offered by World Liberty Financial, using it to invest in crypto exchange Binance.
• This news set off alarm bells for Democrats, who are now pushing for legislation that bans elected officials and their families from buying or selling crypto assets, including stablecoins.

Political Dynamics

Last week, Senate Minority Leader Chuck Schumer, a New York Democrat, told his members that they should not commit to voting for the GENIUS Act as a way to leverage changes, according to a source familiar with the discussions. Talks between Republicans and Democrats about potential changes are ongoing.

Senate Majority Leader John Thune, a South Dakota Republican, has signaled openness to modifications, but told reporters Tuesday that...