Senate stablecoin vote splits Democrats amid concerns over corruption
US Senate Democrats faced backlash after 16 members supported stablecoin legislation, reversing earlier opposition due to corruption concerns linked to President Trump’s cryptocurrency dealings. The bill, which lacks provisions addressing Trump's crypto venture, is set for debate. Moderate Senator Mark Warner endorsed the bill, prioritizing regulatory progress over corruption issues. Senator Kirsten Gillibrand also dismissed concerns about Trump, emphasizing the need for a clear regulatory framework. In contrast, progressive Democrats, including Senator Elizabeth Warren, opposed the bill, arguing it could exacerbate corruption and undermine national security. Senator Michael Bennet introduced an alternative bill to restrict digital asset endorsements by Congress members. Activists criticized Democratic leaders for compromising with Republicans, deepening rifts within the party over cryptocurrency regulation. The internal conflict highlights a divide between the pro-crypto centrists and the anti-crypto progressives, with activists calling for primary challenges against supportive lawmakers.
