Scoop: Trump coins spark Democratic feud over crypto legislation
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Sens. Kirsten Gillibrand and Chuck Schumer at a news conference outside the U.S. Capitol in February. Photo: Anna Moneymaker/Getty Images
Democratic leaders engaged in a tense, closed-door debate Thursday on the fate of a crypto regulation bill — and the best way to force changes to legislation that could hit the floor this month, according to people familiar with the matter.
Why it matters: Crypto divides Democrats on policy and politics. Some progressives, like Sen. Elizabeth Warren (D-Mass.), are concerned about fraud and corruption. Others, like Sen. Kirsten Gillibrand (D-N.Y.), are eager to provide firm guidelines and regulatory certainty for the industry.
🔥 Two causes fueled the latest flareup:
- The New York Times reported that President Trump's family members could profit from the $2 billion worth of their Stablecoins that would be used for a foreign transaction involving an Abu Dhabi investment fund.
- Then Senate Majority Leader John Thune (R-S.D.) announced Thursday he was moving forward a procedural vote, as early as next week, on the GENIUS Act legislation that Gillibrand is cosponsoring.
Driving the news: Those developments prompted a concerned Minority Leader Chuck Schumer (D-N.Y.) to ask Gillibrand for an update about the bipartisan bill, which would establish the first-ever stablecoin regulatory framework.
- Gillibrand ticked through the changes she has fought for that she believes address Democratic concerns.
- A handful of lawmakers, including Warren, argued against passing the bill in its current form. Warren noted many Democratic amendments were rejected in committee, especially those that address potential corruption.
- Sen. Jeff Merkley (D-Ore.) took aim at the Trump family and possible conflicts of interest. "We should file an amendment to end the sale of coins by elected officials," he said.
Schumer cautioned senators to avoid committing to the legislation. He wants Democrats to have maximum leverage to make changes to the bill.
What they're saying: "Sen. Gillibrand has worked closely with Sen. Schumer on providing clear regulations for stablecoins, and that collaboration is continuing as we work to pass the strongest bill possible," said Evan Lukaske, a Gillibrand spokesperson.
Zoom in: Five Democrats voted for the bipartisan legislation in committee in March, including another Democratic cosponsor, Sen. Angela Alsobrooks (D-Md.). Many Democratic amendments were defeated and it ultimately passed 18-6 in committee.
- If all Republicans support the bill — and all five committee Democrats continue to support it — the legislation would need just one more Democrat to reach the 60 votes necessary for cloture.
- Warren and Merkley argued the bill doesn't provide basic safeguards against corruption, pointing to the New York Times story.
The bottom line: The spirited debate ended with Schumer asking Democrats to hold back their support until his party could secure changes to the bill.
