"Senate Democrats Divided Over Stablecoin Bill Amid Corruption Concerns"

Senate stablecoin vote splits Democrats amid concerns over corruption

US Senate Democrats are getting flak after they helped move stablecoin legislation ahead for discussion on the Senate floor.

On May 19, 16 Democratic senators broke from the party line to pass a motion to invoke cloture, which will now set the bill up for debate on the Senate floor. Some of the same Democrats had held up the bill in early May when they withdrew support, citing corruption concerns over President Donald Trump’s cryptocurrency dealings.

The bill’s opponents hailed lawmakers’ refusal to support it but were soon taken aback when the senators reversed their position. The lightly amended legislation contained no provisions regarding World Liberty Financial, the Trump family’s crypto venture.

Some activists have said that the Democrats supporting the bill should be ousted in the upcoming Democratic primaries in 2026, reflecting a growing rift in the Democratic Party over cryptocurrencies.

Democratic lawmakers’ approach to crypto shows split in party

On May 19, moderate Democratic Senator Mark Warner announced he would support the bill, stating that it was “not perfect, but it’s far better than the status quo.”

Warner set corruption concerns aside, stating, “Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight [...] But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay.”

Warner concluded it would be better for the US to move forward on imperfect stablecoin legislation than to fall behind other jurisdictions.

Democratic Senator Kirsten Gillibrand, one of the bill’s sponsors, also pushed aside Trump corruption concerns, saying they should be addressed separately.

Democratic activists lambast Democratic GENIUS supporters

The progressive and activist wings of the Democratic party have roundly criticized Congressional leadership for compromising with Republicans on measures that, they claim, should be deal breakers.

In March, activists were enraged when Senator Chuck Schumer, a Democrat from New York and minority leader in the Senate, voted with the Republicans on a continuing resolution for government funding. One progressive observer accused him of giving up leverage and weakening the Democratic position.

Then, in April, disagreements over how Democrats should fight Trump’s mass deportations further deepened the rift.

Now, crypto has become another wedge between the activist wing, which provides crucial voter activation during elections, and centrists in Congress.

Magazine

With the stablecoin bills in the House and Senate poised to move ahead, the Democrats seem ill-suited to mount an effective opposition to the bills. Internal struggles and interests within Congress have disunited lawmakers, while activists want a new crop of congresspeople to represent them next term.

In the Democratic Party’s internal battle between the anti-crypto progressive wing and the pro-crypto pragmatists, the latter is winning out, so far.