The future of the formal GENIUS Act, also known as the Stablecoin Bill, remains uncertain. Just days before the expected floor vote, it has caused a rift within the previously bipartisan alliance in the U.S. Senate.

However, the bill has encountered a major roadblock on what seemed like the promised path for cryptocurrency regulation. Four out of nine Senate Democrats who helped deliver the raw material for this bill in committee threaten to permanently withdraw their support unless significant revisions are made.

Key-Takeaways:

• A bipartisan Senate alliance collapses, leaving the Stablecoin Bill in limbo. Now the key Democrats are threatening to filibuster unless there are significant changes.
• The bill, which seeks to regulate dollar-pegged cryptocurrencies with strict reserve and consumer protection requirements, faces bipartisan opposition.

Key Democratic Objections to the Stablecoin Bill

A bill for the regulation of stablecoin now faces opposition after gaining bipartisan support in March. The issue has prompted concerns from Senate Democrats led by Arizona Senator Ruben Gallego.

Eight other Democrats joined Gallego in issuing a statement of opposition. ‘The bill as it stands still has a myriad of problems that need to be addressed,’ they said.

The main concerns involve stronger anti-money-laundering provisions. In addition, they look for foreign issuer regulations and national security protections.

More concerns revolve around the security of the issuing companies themselves and the liability of the issuers. Democrats want provisions to enforce the requirements of the bill.

Senator Mark Warner and Lisa Blunt Rochester have also withdrawn their support for the Stablecoin bill, as well as Senator Andy Kim. All three had also voted favorably to send the bill out of committee.

Notably, three Democratic cco-ponsors of the legislation, Sens. Kirsten Gillibrand and Angela Alsobrooks, did not sign the opposition statement. That demonstrates a split among those Democrats who have championed cryptocurrency regulation.

Core Provisions and Republican Perspective on the Stablecoin Bill

The Stablecoin Bill is formed to create a framework for the regulation of capital, specifically ddollar-peggedcryptocurrencies. It circumvents the de jure constraint of issuing fiat unless backed 100% with U.S. dollars and liquid assets like Treasury securities.

The most that any issuer with a market capitalization of over $50 billion must report is reserves. They also needed to be audited to make sure that there is transparency.

Among the provisions in the bill are controls on strict marketing standards. It also has guidelines for insolvency proceedings that protect consumers.

These rules are meant to have the right degrees of consumer protection and innovation. The bill is aimed at regulating the growing cryptocurrency market responsibly.

Republican Senator Bill Hagerty, a lead sponsor of the bill, was frustrated by the Democratic flip. On X (formerly Twitter), he gave humans a stark choice: advance with bipartisan changes or leave crypto legislation to only be a Republican issue.

We must advance legislation that enshrines American leadership in the digital asset space and protects the US dollar for centuries to come. That time is now.

We have a choice here. Move forward and make any remaining changes needed in a bipartisan way, or show that digital… https://t.co/Y7qwGPK1m0

— Senator Bill Hagerty (@SenatorHagerty) May 4, 2025

Hagerty’s push for the bill is part of a broad effort in President Trump’s Washington. But the administration has brought to an end enforcement actions against crypto companies and put pro crypto regulators in place.

Political Implications and Some Obstacles in Procedures for the Bill

The Stablecoin Bill doesn’t just hit procedural bumps in the Senate; it needs 60 votes to defeat a filibuster. Republicans hold only 53 seats and will need at least seven Democratic backers to pass the bill.

The biggest hurdle will be the defection of previously supportive Democrats. To move it forward, the legislation almost becomes impossible without addressing their concerns.

Senator Elizabeth Warren is among the critics of the Stablecoin Bill, among others who are prominent Democrats. They claim that it does not do enough to protect consumers and may allow tech companies, such as those associated with Trump or Musk, to make a profit on their own stablecoins.

There is also worry that the bill could force government bailouts that cost a lot of money. If stablecoin issuers are subject to insolvency under the bill’s design, events of such kind would take place.

Also speaking out against President Trump’s involvement in the cryptocurrency is House Democrat Maxine Waters. On the rushed nature of the current legislation, she stated that she is ‘deeply concerned the President launched his own stablecoin.’

Over the past three years, she said she was working to establish a safe regulatory framework. However, she did not call for legislation without addressing pressing issues poised to influence American investors and consumers.

Stablecoins are seen as a transformative part of both the crypto and the financial world, even through their lack of political improvement. Stablecoins are also attractive to retailers as a cheap alternative to credit cards and checks.

According to the reports, several U.S. companies and banks are looking into the stablecoin market and even offered solutions to investors to reinvest their capital. However, they are waiting for a favorable federal regulatory regime to roll out.

Conclusion

The Stablecoin Bill is a distinct turning point in crypto innovation’s relationship with federal law and, of consequence, for America’s crypto future. Negotiations go on, and its fate is unknown with so many in Washington fiercely polarized. Can this bill serve as a first step to a regulation that will strengthen the crypto market, or will political strife block it down?