Senate removes Trump provisions in push to pass stablecoin bill
The US Senate could pass a key bipartisan stablecoin bill as soon as next week after removing language targeting President Donald Trump and his family’s sprawling crypto interests.Republican Senator Cynthia Lummis said o...
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The US Senate could pass a key bipartisan stablecoin bill as soon as next week after removing language targeting President Donald Trump and his family’s sprawling crypto interests.
Republican Senator Cynthia Lummis said onstage at an event by Coinbase’s lobbying arm, Stand With Crypto, that she thinks it's a “fair target” to have the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, passed by May 26 — Memorial Day in the US.
Joining her onstage was Democratic Senator Kirsten Gillibrand, who hinted that the bill’s language was changed to scrap provisions that targeted Trump’s various crypto projects, which include memecoins, a crypto platform, a stablecoin and a crypto mining company that plans to go public, among others.
“When this language comes out, people will see really good refinement, a lot of progress, on things like consumer protection, and bankruptcy protection, and ethics,” Gillibrand said. “Things beyond just ‘what’s the structure?’ and ‘what’s required for an issuer?’”
Source: Brian ArmstrongSenate Democrats pulled support for the bill on May 8 and stalled its momentum, airing concerns that it wouldn’t help address multiple crypto-tied deals that will personally enrich Trump.
“A lot of what President Trump is engaged in is already illegal,” Gillibrand said. “I also think his issuance of a memecoin is illegal based on current law.”
“It’s literally offering anyone who wants to curry favor with the administration to just send him money — that’s about as illegal as it gets.”“I’m not so worried about this bill having to deal with all President Trump’s ethics problems. What this bill is really intended to do is regulate the entire space of stablecoins,” she added.
Gillibrand said the revised bill includes “some ethics requirements,” but it was “not an ethics bill.”
“If we were dealing with all President Trump’s ethics problems, it would be a very long and detailed bill,” she added.
Coinbase CEO Brian Armstrong, also on stage, was hopeful the Senate would vote on the stablecoin bill “early next week.”
Armstrong, whose company cozied up to Trump by donating $1 million to his inauguration fund, declined to comment when asked if the President’s memecoin could impact the passage of bipartisan crypto bills.
“It’s not my place to really comment on President Trump’s activity,” he said. “What I do think is important is that this bill remains focused on stablecoins.”
Crypto bills “absolutely critical” to pass before midtermsThe crypto industry is pushing for Congress to pass the GENIUS Act and a Republican-drafted crypto market structure bill before the midterm elections on Nov. 3, 2026, where all 435 House seats and a third of the 100 Senate seats are up for election.
“We have a very narrow window to get legislation through between now and the midterms,” Marta Belcher, the president of the crypto lobby group the Blockchain Association, told Cointelegraph at the Consensus conference in Toronto.
“I strongly suspect that window is going to close very quickly. I don't know if we're going to get another window like this to get legislation through,” she added.
“It's absolutely critical that we get it through now, especially because there really is a real possibility that in the future we end up with an administration that is hostile to crypto.”
The association’s communications director, Chris Jonas, added that it’s critical the bills pass before Congress takes a recess for the month of August.
Related: Crypto execs flock to DC to support Senate stablecoin bill
“Once you get into the calendar year of the midterms, historically not a lot of legislation moves, so that's why it’s so critical,” he explained.
Trump should be on track to sign both crypto bills before the August break, according to Bo Hines, the executive director of the Presidential Council of Advisers for Digital Assets.
Hines noted on stage at Consensus on May 13 that negotiations on both bills are still ongoing, but it was “the President's desire” to sign both “stablecoin legislation and market structure legislation before the August recess."
Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
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