Senate’s New Stablecoin Draft Doesn’t Target Trump’s Crypto, Tweaks Big-Tech Approach
The U.S. Senate’s revised stablecoin legislation aims to overcome Democratic objections and secure passage. Initial bipartisan support in March faltered due to concerns about President Trump’s crypto interests and the potential for large tech companies like Meta and X to issue stablecoins. Negotiations resulted in significant changes, prompting proponents to claim major victories on critical issues. The bill’s progress hinges on a cloture vote, potentially occurring next week, to advance to a final Senate vote before the August recess.
While the draft doesn’t directly address concerns about President Trump’s personal benefit from the regulated industry, it attempts to mitigate the risk of tech giants dominating the stablecoin market. The bill proposes that a public company not primarily involved in financial activities, and its subsidiaries, can only issue payment stablecoins with unanimous approval from a newly created multi-agency Stablecoin Certification Review Committee.
However, critics argue this provision contains significant loopholes. Mark Hays of Americans for Financial Reform and Demand Progress points out that the restriction applies only to public companies, excluding private entities like X and TikTok. He also notes that public companies could potentially circumvent the rules by acquiring stakes in private companies. Hays contends that the bill offers inadequate safeguards for consumers and prioritizes the crypto industry’s demands over careful policymaking, further raising concerns about the potential for enriching the president.
Bo Hines, a chief Trump advisor on crypto, addressed these concerns at Consensus 2025 in Toronto, asserting that the president’s business interests and family involvement in the crypto industry, including their stake in World Liberty Financial, present no conflict of interest. Hines maintains optimism regarding the bill’s passage before the August recess, emphasizing ongoing negotiations and the president’s commitment to enacting both stablecoin and market structure legislation. The White House liaison to Capitol Hill expressed continued confidence in the legislative process.
