As Senate Stablecoin Discussions Near Conclusion, Trump’s Cryptocurrency Connections Remain a Focus

The U.S. Senate has reached a pivotal point regarding the approval of significant crypto legislation centered around stablecoin regulation. However, several Democrats assert that any final discussions must encompass alleged conflicts involving President Donald Trump.

Initially, supporters of this stablecoin initiative aimed to finalize discussions within a week. Instead, deliberations will extend into a second week, focusing on establishing regulatory frameworks for dollar-pegged tokens crucial for digital asset transactions.

Among the key points in the upcoming debates will be a proposal from a notable group of Democrats, including Senators Elizabeth Warren and Chris Murphy, advocating for an amendment to prohibit the president and other high-ranking officials, including congressional members, from participating in stablecoin-related activities. This restriction would directly impact Trump given his family’s ties to World Liberty Financial.

A collective statement from a group of seven Democrats, including Minority Leader Chuck Schumer, emphasized their commitment to representing the public rather than pursuing personal gain. They highlighted the need for an amendment that prevents top officials from profiting from any stablecoin venture while in office, particularly in light of Trump’s recent private gathering with significant investors in a cryptocurrency initiative.

Some Democrats previously supported the bill’s progress, claiming that the existing U.S. Constitution already prohibits the president from receiving benefits from foreign entities, a point they argue is relevant to Trump’s family crypto business. Senators such as Kirsten Gillibrand of New York believe reiterating this in the stablecoin bill is unnecessary. Yet, Murphy contended that enforcing constitutional violations is less straightforward than implementing a clear law with defined penalties.

Senator Bill Hagerty, a Republican from Tennessee and advocate for the GENIUS Act, expressed optimism about the bill’s prospects, highlighting bipartisan backing as a positive indicator. The legislation recently passed a cloture vote requiring 60 affirmative votes, receiving support from 66 senators, including around a dozen Democrats.

The advancement of the bill signifies a designated period for floor debate before it encounters another cloture vote and a subsequent approval vote, which requires only a simple majority. At that juncture, the House will decide whether to accept the Senate’s version or propose an alternative for negotiation and further voting.

On Thursday, Murphy confirmed that discussions surrounding stablecoins would continue into the next week. He noted that some Democrats who initially supported the previous cloture vote might change their stance if the current discussions do not engage with the Trump-related issues.

Several Democrats, who have protested Trump’s crypto dinner, are focusing on the stablecoin discourse to examine potential conflicts among government officials. Murphy characterized Trump’s administration as the most corrupt in U.S. history.

In response to these allegations, Eric Trump, the president’s son, stated during a recent crypto event that the family’s business activities are unrelated to the presidency, emphasizing their long-standing involvement in the crypto space prior to Trump’s election.

Additionally, Bo Hines, a White House advisor for digital assets, reinforced this sentiment at the same event, asserting that the president cannot be bought.