Stablecoin support as political leverageCorruption concerns may be one factor behind Democrats’ pumping the brakes on bipartisan crypto laws, but some observers believe it could be more of a political ploy. Aaron Brogan, a lawyer specializing in regulatory issues in the cryptocurrency industry, said it’s “unlikely that this group of Senators suddenly came to their senses and realized that the mostly benign stablecoin bill they had previously supported lacked protections they refused to name.”Brogan suggested that either lawmakers wanted to use support for the bill as leverage — Senate Majority Leader Chuck Schumer has reportedly urged Democratic lawmakers in private not to commit to the bill for this very reason — or an influential donor wants to kill the bill or use it as leverage. Related: Are Donald Trump’s tariffs a legal house of cards?
While he said it’s impossible to know for sure, “Coinbase has attempted to bundle the pending market structure legislation with stablecoins to make it more likely to pass,” he said. WLFI accused of shady dealingWLFI has already netted some $550 million from Trump token sales and is sealing more deals that will enrich its founders and board members, many of whom are Trump family members. One of them, Eric Trump, announced on May 1 that Abu Dhabi-based investment firm MGX would use USD1 to settle its $2-billion investment in global crypto exchange Binance.
Bipartisan efforts on stablecoin bills endangeredOf the five pro-crypto Democrats to pass the GENIUS Act in the Senate Banking Committee, four signed their names to a statement on May 3, saying that they do not feel comfortable with the direction stablecoin legislation is taking.“The bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability,” the announcement reads.
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