- The U.S. Senate is considering a revised draft bill to regulate stablecoin issuers.
- Key Democratic concerns focus on possible conflicts of interest for President Donald Trump and the potential role of large tech companies as stablecoin providers.
- Recent changes prohibit public tech companies from issuing payment stablecoins without unanimous approval from a new federal committee.
- Consumer advocates argue the bill has loopholes, mainly excluding private tech firms such as X and TikTok.
- Senate floor action on the bill is expected soon, with ongoing negotiations ahead of the August recess.
Lawmakers in the U.S. Senate have released an updated draft of legislation governing stablecoin issuers. The latest version introduces changes aimed at addressing Democratic senators’ concerns, particularly around oversight and possible industry conflicts as the bill moves toward a vote.
The bill, which sets standards for companies issuing stablecoins—digital tokens pegged to the U.S. dollar—previously received strong bipartisan support in the Senate Banking Committee in March. However, it stalled last week on the Senate floor due to Democratic objections. Major worries include potential conflicts of interest involving President Donald Trump and the chance that large tech firms, such as Meta and social platform X, could become stablecoin issuers.
A summary from supporters of the new draft stated that “As the result of hard-fought negotiations, Democrats won major victories on a range of critical issues,” but the measure’s advancement remains uncertain. According to sources familiar with the talks, a procedural Senate move could occur as soon as next week.
The adjusted bill now states that any public company not primarily focused on financial activities—and its subsidiaries—must get a unanimous approval from a multi-agency Stablecoin Certification Review Committee before issuing payment stablecoins. This committee would be established by the legislation to review such cases.
However, Mark Hays from Americans for Financial Reform and Demand Progress said the restrictions do not affect private companies, like X and TikTok. He noted that some large private tech firms could bypass the rules altogether, and public firms could potentially gain control of private companies to issue stablecoins. Hays commented, “There’s already a way that large tech firms that aren’t public could become issuers without adhering to these new standards,” and labeled the current draft as insufficient for consumer protection.
Negotiators did not add new provisions barring the president or his administration from benefiting financially from the crypto sector, another key Democratic demand. Bo Hines, a senior crypto adviser for Trump, dismissed concerns about conflicts of interest at a recent industry event, stating, “Trump can’t be bought.” Hines also said he is confident the Senate will address stablecoin and crypto market structure laws before the August recess.
Further steps on the Senate floor, which are required before the legislation can proceed to a final vote, could be taken soon, according to people briefed on the negotiations.
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