US Stablecoin Legislation Faces Major Setback as Senators Withdraw Support

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.

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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.

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