What was once a promising step toward regulating crypto and stablecoins in the US is now facing serious political turbulence.
The latest version of the “GENIUS Act” is under fire, as ten US Senators, including several previous backers, have publicly voiced concerns over the bill’s direction.
According to journalist Eleanor Terrett, the backlash erupted just one day after the revised draft was unveiled, catching many off guard. Key critics, including Democrats Ruben Gallego and Mark Warner, now argue the bill lacks strong anti-money laundering provisions and could compromise national security.
Even co-sponsor Angela Alsobrooks declined to support the opposition letter, signaling division within the bill’s original backers.
The legislation, originally pitched as a framework to keep the US at the forefront of stablecoin innovation, is now accused of exposing the market to regulatory loopholes and increased risk. With the Senate trying to push the bill through quickly, this sudden resistance throws its future into question—potentially delaying progress for months.
For crypto investors and developers, the uncertainty is mounting. With no firm regulatory path in place, payment stablecoins remain in limbo, and projects looking to merge AI with blockchain tech may face further hesitations due to political gridlock.
The timing is also notable, as the debate unfolds alongside scrutiny of President Trump’s own crypto ties, adding another layer of complexity to an already contentious legislative effort.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/us-stablecoin-legislation-faces-major-setback-as-senators-withdraw-support/