According to a recent report by Punchbowl News, Senate Minority Leader Chuck Schumer is concerned about the treatment of Tether, the leading stablecoin issuer, in the much-talked-about GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act.
Schumer believes that the Democrats should refrain from showing public support for the bill in order to be able to extract future concessions from the Republicans.
In March, Axios reported that Democratic Senators, including crypto critic Elizabeth Warren, proposed a series of amendments to the high-stakes stablecoin bill that specifically dealt with national security and illicit finance.
Notably, the Democrats wanted to bar foreign-issued stablecoins from being available in the U.S. Such an amendment would be an enormous blow to the El Salvador-domiciled Tether, which remains the biggest player on the stablecoin market. The amendment was rejected by Republicans, and the bill successfully passed the Senate Banking Committee in March.
As reported by U.Today, Politico recently reported that some crypto-friendly Democrats, whose votes are crucial for passing stablecoin legislation, have now soured on the bill. The Republicans planned to move forward with a full Senate vote before Memorial Day, but the newfound reluctance of some Democrats, including Arizona Senator Ruben Gallego, represents a major hindrance to the bill that could bring clarity to the U.S. stablecoin sector.
Punchbowl News claims that a schism emerged among Senate Democrats during their Thursday lunch meeting, which ultimately prompted some crypto-friendly voices within the opposing party.
Vladislav Sopov