In the US Senate, Democrats faced criticism following their decision to advance stablecoin legislation. On May 19, 16 Democratic senators supported the bill's discussion, contradicting earlier concerns about corruption.
Support and Criticism of Stablecoin Legislation
On May 19, 16 Democratic senators broke from party lines to support stablecoin legislation. This support was unexpected, as they had previously held up the bill citing corruption concerns regarding Donald Trump's cryptocurrency dealings. Opponents of the bill expressed dissatisfaction at its revival, particularly since it did not address issues with World Liberty Financial.
Party Disagreements
Moderate Senator Mark Warner defended the bill, stating it was not perfect but better than the status quo. Conflict arose between progressive Democrats and bill supporters. Senator Elizabeth Warren expressed concern that the bill exacerbated corruption and threatened financial stability and consumer protection.
Activists Call for Change
Progressive activists criticized Democratic leadership for compromising with Republicans, viewing it as a betrayal. Activists express dissatisfaction with some Democrats supporting the bill, calling for changes in the upcoming 2026 primaries. The cryptocurrency issue has become a new dividing line between activists and centrists within the party.
The outcome of the bill reflects internal disagreements among Democrats regarding cryptocurrency regulation and the need for a clear strategy in light of upcoming elections.
