US Senate to vote on key stablecoin bill Thursday amid bipartisan tensions

The U.S. Senate is poised to start voting on a landmark stablecoin bill on Thursday, despite growing resistance from Democrats and divisions within the GOP.

Politico reported that Republican supporters of the bill, dubbed the GENIUS Act, are seeking to address mounting concerns within their own party while trying to secure support from a group of influential Democrats.

Senate Majority Leader John Thune filed cloture on the legislation Tuesday evening, advancing the bill toward a crucial procedural vote requiring bipartisan backing. The bill, led by Sen. Bill Hagerty, would mandate that stablecoins be fully backed by U.S. dollars and short-term Treasuries (or comparable liquid assets).

The development comes as Republican sponsors race to secure support from key Democratic senators, several of whom publicly opposed the latest version of the bill over the weekend. The bill needs 60 votes to advance, meaning Republicans, who hold 53 seats, must win backing from at least some Democrats to move it forward.

On Saturday, several Democratic senators — including Ruben Gallego, Mark Warner, Raphael Warnock, Lisa Blunt Rochester, Catherine Cortez Masto, Andy Kim, Ben Ray Luján, John Hickenlooper and Adam Schiff — voiced concerns over the bill, citing the need for stronger safeguards on foreign stablecoin issuers and more robust anti-money laundering provisions.

Republican lawmakers are also encountering resistance from within their own ranks as the stablecoin bill heads toward a floor vote. Sen. Rand Paul (R-Ky.) signaled his likely opposition on Tuesday, arguing that the proposed regulations are unnecessary, Politico reported. Sen. Josh Hawley (R-Mo.) also expressed hesitation, warning that the bill could pave the way for major tech companies to issue stablecoins. Sen. John Kennedy (R-La.), who previously supported the bill in committee, said he's withholding his support for now, according to the report. 

Meanwhile, Democrats have raised concerns over President Trump's increasing ties to the cryptocurrency sector. On Tuesday, Sen. Richard Blumenthal (D-Conn.), the ranking member of the Senate Permanent Subcommittee on Investigations, sent inquiry letters to World Liberty Financial and Fight Fight Fight LLC, seeking information on potential conflicts of interest stemming from Trump's crypto-related ventures.