Sen. Tim Scott said Democrats who voted against the genius act should expect “painful” political outcomes. He issued a statement after the code bill failed in the US Senate, where Democrats blocked it despite months of bipartisan talks.
The Genius Act, led by Senator Bill Hagerty, would have created the first legal framework for stubcoin in the United States, but two Democrat co-sponsors flipped the vote, with two Republicans, Josh Hawley and Rand Paul.
Scott told her that the response from the Crypto industry would like to return to lawmakers and hand over the bill, according to Eleanor Terrett, a former Fox business journalist and founder of American Crypto.
Scott, who chairs the Senate Banking Committee, said his party made “major concessions” to take over the bill. They included reducing the time Stablecoin publishers had to register with the US, tightening national security rules, and mitigating anti-money laundering measures.
Still, Senators Kirsten Gillibrand and Angela were helping to write the bill, but they turned their backs on it. Scott told Eleanor, “If you can get a lot of what you want, if you can’t say yes yet, then I won’t get it.” He said that both the Democrats and the two Republicans who opposed it hope that delays will come after realising how to damage financial inclusion and block crypto innovation.
Democrats lose the bill as Trump’s code controls talks
The bill failed in the Senate, where Crypto had previously enjoyed the most favorable climate under President Donald Trump’s second term. The set-off was the first major blow to the industry during the Trump era. Republican leaders needed a democratic vote to push the bill through, but they didn’t get them.
Democratic leader Sen. Chuck Schumer had warned his caucus not to promise his support for the bill a week before the vote. In a closed room, he asked to use their leverage to request more changes. Senators like Senator Elizabeth Warren and Chris Murphy have expressed concern about passing cryptography while the Trump family is deeply involved in the space.
Trump’s sons launched the Stubcoin Venture last year, and issued memocoin just two days before Trump himself re-inaugurated. “Trump Crypto Coin fraud is the biggest corruption in White House history,” Murphy said. He and others have called for language in a bill that prohibits the president from creating or profiting from code.
Not everyone agreed. Sen. Reuben Gallego, who voted for an earlier version of the bill and led the last minute negotiations, said Trump’s coins had nothing to do with the actual bill.
“If we don’t pass Stablecoin law, he’s still trying to do everything he’s trying to do. The most important thing we can do is get a strong, strong bill.”
After the bill passed away, Scott stood on the Senate floor and said, “a vote to stop President Trump from winning in the digital assets field. It’s a vote against common sense — that’s simple.” He accused Democrats of hijacking “Trump Mad Syndrome” of what had been the victory for both parties and the crypto space.
Democrats said they need more time to finalise the deal. Gallego asked to delay the vote on the Senate floor, but Republicans refused the request. John Toon, now the Senate majority leader, has filed a motion to reconsider.
Senator Warren told reporters: “I’ve always been worried about the impact of money in Washington, but the crypto industry seems to think they now have a lot of power because of the contributions they have made.”
After the vote, Scott’s team revealed that code donors don’t want to waste money on Democrats anymore. “Everyone who supports Senate Democrats in the hopes of code advancements is ignoring reality,” said Jennifer DeCasper, Scott’s longtime aide and current executive director of the current Republican Senators Committee.
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