General Discussion

Senate Democrats rally against crypto bill amid criticism of Trump's ties to the industry

Washington — Senate Democrats are rebelling against a crypto regulation bill, putting the first-of-its-kind legislation in jeopardy ahead of a possible key vote on it later this week.

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.

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, and using it to invest in crypto exchange Binance.

The 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.