Democrats block stablecoin bill as they raise concerns about Trump's crypto ventures

MARY CLARE JALONICK and ALAN SUDERMAN

Thu, May 8, 2025, 1:10 PM 3 min read

WASHINGTON (AP) — Senate Democrats person blocked authorities to modulate stablecoins, a signifier of cryptocurrency, aft arguing that the measure needed stronger protections and airing concerns that it could assistance President Donald Trump enrich himself.

The bill, which would modulate however stablecoin issuers run successful the U.S., had antecedently won immoderate Democratic support. But it failed 49-48 connected a procedural ballot Thursday aft Democrats said that they needed to spot much changes to the authorities earlier they could backmost it.

Senate Majority Leader John Thune said that Republicans would enactment with Democrats if they allowed the measure to determination forward, but they refused. All Democrats voted not to bring it up.

The ballot is simply a stroke to 1 of Trump’s apical legislative priorities and a setback for the cryptocurrency industry, which spent heavy successful past year’s predetermination and has been emboldened to cement its power successful authorities and the mainstream fiscal system. The authorities would purpose to make a national model to modulate the stablecoin industry, which is presently governed by a patchwork of existing national and authorities laws.

Stablecoins are a fast-growing country of the cryptocurrency manufacture that person produced tremendous profits for immoderate of the large players involved. They connection a buffer from cryptocurrency’s notorious volatility due to the fact that they are pegged to real-world assets, similar U.S. dollars oregon gold. Typically, that means a azygous stablecoin is worthy $1, making them a overmuch much reliable integer plus to marque commercialized transactions than different forms of crypto.

While immoderate Democrats hold that regularisation is needed, and respective voted to determination the measure retired of committee, Trump’s engagement successful the crypto manufacture has analyzable the legislation’s path. Trump launched a meme coin earlier this twelvemonth that has generated much than $320 cardinal successful fees for its creators, according to the blockchain investigation steadfast Chainalysis. And earlier this week, Trump promoted a meal he’s acceptable to be connected May 22 that’s unfastened to astir anyone who buys capable of the coins.

Another Trump-family linked crypto task called World Liberty Financial precocious announced that it was issuing its own stablecoin, called USD1. The stablecoin got a immense boost erstwhile World Liberty Financial announced past week that an concern money successful the United Arab Emirates would beryllium utilizing $2 cardinal worthy of USD1 to acquisition a involvement successful Binance, the world’s largest cryptocurrency exchange.

Among different projected changes, Democrats said that elected officials and their families should beryllium barred from owning, controlling oregon promoting stablecoin concern ventures.