Al051225
How Shaky is Stablecoin Legislation?
As we noted last week, Democrats were joined by two populist Republicans in blocking the procedural motion necessary to move the “GENIUS” Act to the Senate floor (see FSM Report CRYPTO48). The bill foundered on two policy differences and, beneath them, the politics evident in growing determination of even centrist, moderate, and crypto-friendly legislators to block or, if that’s not possible, at the least embarrass the President and friendly Republicans. For Members of Congress, the 2026 midterm election is already well under way, and the President’s stablecoin ventures are not the only stablecoin-related issue on which Democrats think they can put the GOP in a tight spot. Other considerations in the marathon drafting sessions ahead of the Senate floor debacle reflect key banking-industry concerns in areas such as master-account access, stablecoin return, and affiliate restraints. The independent bankers who spoke out on these issues as the Senate headed to a vote may not have the money wielded by crypto interest groups, but they have more votes, especially in rural states. What they want thus influences Congress at least as much as what giant bankers seek. When community and large banks are united – as they are on stablecoin legislation – this is a formidable concern for many Members, including senior GOP legislators.