Concerns expressed by U.S. lawmakers and industry leaders regarding President Donald Trump’s involvement in crypto ventures—and their potential impact on related legislation—were addressed by Coinbase Chief Legal Officer Paul Grewal.
Another vote on the GENIUS Act is anticipated to be brought before the U.S. Senate within the coming days, though it remains uncertain whether the concerns raised by Democrats will be addressed by the bill’s advocates.
While speaking at the Consensus conference in Toronto on May 15, it was noted by Grewal that “hiccups” had been encountered in Congress since the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was advanced by the Senate Banking Committee in March.
Although disagreements over “substantial issues that need to be addressed” in the bill were acknowledged by Grewal, it was suggested by him that President Trump’s involvement in the crypto industry serves as a “complicating factor.”
It was stated by Grewal that the conversation surrounding the president’s endorsement of one or more specific memecoins, along with related initiatives, introduces an added layer of complexity to achieving bipartisan agreement on proper regulation of the spot market. However, confidence was expressed by him that the Senate and the House would ultimately resolve those matters.
Opposition to the GENIUS Act was voiced by Democrats, including Senator Elizabeth Warren, who specifically criticized the Trump family’s involvement in the crypto venture World Liberty Financial and its USD1 stablecoin.
Regardless of the specific terms for potential amendments to the bill, it is still anticipated by many lawmakers that the Senate will conduct another vote within a few days. On May 15, Punchbowl reported that significant victories were claimed by Democrats after they were assured that several of their concerns—related to consumer protection, Anti-Money Laundering measures, and national security provisions—would be taken into account.
Stablecoins First — Is a Market Structure Bill Next?
Draft legislation for a digital asset market structure bill, representing a revised version of the FIT21 bill that was passed by the chamber in May 2024, is also being reviewed by the House of Representatives. Resistance to the bill has similarly been expressed by Democratic representatives, who have cited concerns over what they referred to as “Trump’s crypto corruption.”
It was stated by Grewal that valuable insights are expected to be gained from the developments anticipated in the coming days regarding stablecoins, which will indicate the willingness to address these challenges on a timeline similar to the one recently outlined by the White House and key congressional leaders.
