US Stablecoin Legislation Faces Major Setback as Senators Withdraw Support
What was once a promising step toward regulating crypto and stablecoins in the US is now facing serious political turbulence.
The latest version of the “GENIUS Act” is under fire, as ten US Senators, including several previous backers, have publicly voiced concerns over the bill’s direction.
According to journalist Eleanor Terrett, the backlash erupted just one day after the revised draft was unveiled, catching many off guard. Key critics, including Democrats Ruben Gallego and Mark Warner, now argue the bill lacks strong anti-money laundering provisions and could compromise national security.
Even co-sponsor Angela Alsobrooks declined to support the opposition letter, signaling division within the bill’s original backers.
The legislation, originally pitched as a framework to keep the US at the forefront of stablecoin innovation, is now accused of exposing the market to regulatory loopholes and increased risk. With the Senate trying to push the bill through quickly, this sudden resistance throws its future into question—potentially delaying progress for months.
For crypto investors and developers, the uncertainty is mounting. With no firm regulatory path in place, payment stablecoins remain in limbo, and projects looking to merge AI with blockchain tech may face further hesitations due to political gridlock.
The timing is also notable, as the debate unfolds alongside scrutiny of President Trump’s own crypto ties, adding another layer of complexity to an already contentious legislative effort.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
