Source: Cointelegraph
Original: “Senate Stablecoin Vote Sparks Division Among Democrats, Corruption Concerns Become Controversial Focus”
Democratic senators in the U.S. Senate faced criticism after helping to push stablecoin legislation into the discussion phase in the Senate.
On May 19, 16 Democratic senators broke from party lines to pass a motion to end debate, allowing the bill to be debated on the Senate floor. Some of these Democrats had previously withdrawn their support in early May due to concerns that President Trump’s cryptocurrency dealings involved corruption, leading to a temporary halt of the bill.
Opponents of the bill initially praised the lawmakers for refusing to support it, but were soon shocked by the senators' change of stance. The slightly modified bill did not include any provisions regarding the Trump family's cryptocurrency business, World Liberty Financial.
Some activists stated that Democratic supporters of the bill should be eliminated in the upcoming 2026 Democratic primaries, reflecting the growing divide within the party on cryptocurrency issues.
On May 19, moderate Democratic Senator Mark Warner announced his support for the bill, stating that it was "not perfect, but far better than the status quo."
Warner set aside concerns about corruption, saying, "Many senators, including myself, have very substantive concerns about the Trump family using cryptocurrency to evade regulation […] but we cannot let this corruption distract us from the broader reality: blockchain technology is irreversibly present in our society."
Warner concluded that advancing imperfect stablecoin legislation in the U.S. is better than falling behind other jurisdictions.
Democratic Senator Kirsten Gillibrand, one of the bill's sponsors, also set aside concerns about Trump’s corruption, stating that these issues should be addressed separately.
"Many activities involving President Trump are already illegal," she said, adding that she does not want the president's scandals to "distract us from the important goal of establishing a clear regulatory framework in the U.S. that allows the industry to grow domestically."
During the voting process, progressive Democrats expressed differing opinions. Reportedly, Senator Elizabeth Warren, a senior Democratic member of the Senate Banking Committee and a vocal critic of the cryptocurrency industry, had a heated argument with Gillibrand on the Senate floor.
Before the vote, Warner argued in the Senate debate: "A bill that accelerates the development of the stablecoin market while also enabling the president's corrupt behavior and undermining national security, financial stability, and consumer protection is worse than having no bill at all."
Democratic opponents of the bill did not give up their resistance. Colorado Senator Michael Bennett immediately introduced another bill after voting against the GENIUS Act, humorously named the "STABLE GENIUS Act," combining the names of the Senate and House bills.
This bill would prohibit the president, vice president, and members of Congress from "issuing or endorsing digital assets" and require them to place any assets held during their term in a blind trust.
Although the likelihood of this bill passing is minimal—many past bills restricting the financial activities of congressional members have failed—it clearly shows the significant divide within the Democratic Party on how to provide effective opposition.
Progressives and activists within the Democratic Party have strongly criticized congressional leadership for compromising with Republicans on what they believe should be principled issues.
In March, when New York Democratic Senator and Senate Minority Leader Chuck Schumer voted with Republicans on a government funding continuing resolution, activists were outraged. A progressive observer accused him of giving up negotiating leverage and weakening the Democratic position.
Then in April, divisions deepened within the party regarding how Democrats should respond to Trump’s mass deportation policies.
Now, cryptocurrency has become another point of contention between the activist camp (which plays a key role in voter mobilization during elections) and moderates in Congress.
Ezra Levin, co-founder and co-executive director of the progressive activist organization Indivisible, wrote on the BlueSky platform:
Murshed Zahid, a communications strategist who previously worked for Senator Harry Reid and Representative Louise Slaughter, urged the public to call their senators to express opposition to the bill.
"Any Democrat who votes in favor of this bill today—if they also send emails, texts, or make videos talking about Trump’s corruption—should never be taken seriously again," he said.
Chris Kluwe, a former American football player turned prominent activist in the Democratic political sphere, sarcastically remarked on May 20: "I look forward to speaking at the California State Democratic Party convention on May 31, and I’m sure the bill will absolutely not be mentioned in my assigned four minutes."
On the BlueSky platform, labor researcher and media law historian Peter Labuza responded to a post listing the 16 Democratic senators who supported the bill by directly posting a "primary list."
The issue of party primaries, which determines who will represent the party in specific districts, has also become increasingly controversial.
On May 12, the Democratic National Committee (DNC) voted to reject the internal vote to nominate David Hogg as vice chair. This decision effectively stripped Hogg of his position at the DNC and his ability to promote the controversial policy of supporting progressive challengers in the Democratic primaries.
Hogg had planned to invest $20 million as part of the "Leaders We Deserve" campaign to support progressive and young candidates in the Democratic primaries—this activist organization aims to elevate young leaders who take a tougher stance against the Trump administration.
As the stablecoin bills in the House and Senate are set to advance, the Democratic Party seems to struggle to organize an effective opposition. Power struggles and conflicts of interest within Congress have divided lawmakers, while activists hope for a new generation of congressional members who can truly represent them.
In the ongoing struggle between anti-crypto progressives and pro-crypto pragmatists within the Democratic Party, the latter currently holds the upper hand.
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