Just imagine: American Democrats disapprove of stablecoins. They refused to support even the consideration of the appropriate bill. Market participants are trying to puzzle out what exactly about these altcoins worries US legislators. A group of nine Democratic senators who had previously backed the GENIUS stablecoin bill, introduced by the Republican Party, suddenly made a sharp U-turn. They announced that they would no longer support the bill in its current wording.

The lawmakers justified their decision by citing the lack of anti-money laundering safeguards and the absence of restrictions on foreign issuers in the legislation. This, they argued, undermines national security.

However, while this stance deserves respect, it contradicts the broader trend toward promoting cryptocurrencies. Stablecoins are currently in high demand, and the US Congress is actively working on digital asset legislation. Nevertheless, Democratic senators insist that the priority should be regulating cryptocurrencies, as failures in this area “leave consumers unprotected and vulnerable to predatory practices.”

Previously, lawmakers had been working on the bill known as the GENIUS Act, spearheaded by Senator Bill Hagerty. The goal of the legislation is to establish a federal framework for stablecoin payments. According to the document, these altcoins must be backed by liquid assets, and their issuers must not engage in lending activities.

In March 2025, the bill was approved by the US Senate Banking Committee with bipartisan support. However, Democrats have now changed their minds. Experts believe this reversal may be linked to growing concerns over crypto companies allegedly tied to President Donald Trump. There is a potential conflict of interest, they say. “At this point, Democrats face a choice: move forward and make changes through bipartisan voting, or signal that cryptocurrency legislation remains solely a Republican initiative,” Senator Hagerty emphasized. Interestingly, at least seven Democratic votes are required for the stablecoin bill to advance.