Democrats – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Wed, 10 Sep 2025 04:35:30 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.11 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Democrats – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Democrats unveil new market framework to counter Trump’s crypto footprint https://earlybirdsinvest.com/democrats-unveil-new-market-framework-to-counter-trumps-crypto-footprint/ https://earlybirdsinvest.com/democrats-unveil-new-market-framework-to-counter-trumps-crypto-footprint/#respond Wed, 10 Sep 2025 04:35:30 +0000 https://earlybirdsinvest.com/democrats-unveil-new-market-framework-to-counter-trumps-crypto-footprint/

Democrat lawmakers have introduced a comprehensive legislative blueprint aimed at reshaping U.S. digital asset regulation, proposing to close longstanding gaps in crypto oversight and restore investor confidence in the nearly $4 trillion market, according to a newly released framework.

The proposed plan would grant the Commodity Futures Trading Commission (CFTC) full jurisdiction over spot markets for digital commodities, tokens that do not qualify as securities, resolving the regulatory ambiguity that has left both businesses and investors without clear protections.

It also calls for the CFTC to be given new registration and enforcement authority, as well as mandatory disclosures and consumer protections for crypto trading platforms.

Tackling misconduct

The framework sets out seven core pillars for digital asset legislation, including clarifying token classification, adapting securities rules for token issuers, bringing crypto platforms under exchange-like regulation, and strengthening illicit finance safeguards.

It proposes a dual approach, empowering the SEC to integrate tokenized securities into existing disclosure regimes while instructing the CFTC to police non-security digital assets.

Both agencies would gain expanded funding and authority to regulate custody, margin, and conflicts of interest under crypto-native business models.

Significantly, the framework calls for new controls to prevent public officials from abusing digital asset projects.

It references President Donald Trump’s financial entanglements with crypto initiatives and seeks to bar elected officials and their families from issuing or profiting from tokens while in office, as well as mandates disclosure of all digital asset holdings.

DeFi and stablecoins

The bill also directs regulators to build new oversight models for DeFi protocols and to safeguard traditional markets from the destabilizing effects of unregulated innovations. It reiterates prohibitions on stablecoin issuers offering interest-bearing products, a provision preserved from the 2025 GENIUS Act.

To prevent criminal exploitation of the digital ecosystem, the framework mandates that all digital asset intermediaries, including those abroad serving U.S. customers, register with FinCEN and comply with anti-money laundering and sanctions obligations. DeFi protocols will also be scrutinized for compliance vulnerabilities.

Finally, the proposal highlights the need for bipartisan regulatory leadership. It would require the SEC and CFTC to maintain cross-party commissioner quorums for rulemaking and enable rapid hiring of staff with digital assets expertise.

According to the authors:

“This framework represents a turning point. It restores trust, prevents abuse, and ensures that America—not its adversaries—leads the next generation of financial innovation.”

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Senate Banking Chairman Tim Scott predicts up to 18 Democrats to break ranks on sweeping crypto law https://earlybirdsinvest.com/senate-banking-chairman-tim-scott-predicts-up-to-18-democrats-to-break-ranks-on-sweeping-crypto-law/ https://earlybirdsinvest.com/senate-banking-chairman-tim-scott-predicts-up-to-18-democrats-to-break-ranks-on-sweeping-crypto-law/#respond Wed, 20 Aug 2025 06:52:14 +0000 https://earlybirdsinvest.com/senate-banking-chairman-tim-scott-predicts-up-to-18-democrats-to-break-ranks-on-sweeping-crypto-law/

Senate Banking Committee Chairman Tim Scott reportedly predicts that 12 to 18 Democrats will support comprehensive crypto market structure legislation.

According to Aug. 19 reports, Scott is conducting individual meetings with Democratic members, including those outside the Banking Committee, to build bipartisan backing for the anticipated September bill introduction.

The South Carolina Republican’s outreach efforts follow the House passage of the Digital Asset Market Clarity Act on July 17, which received support from 78 Democrats in a 294-134 vote.

The House legislation establishes jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission while creating registration pathways for qualifying digital asset platforms.

Scott released a discussion draft of the Responsible Financial Innovation Act of 2025 on July 22 alongside Senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno.

The Senate proposal builds upon the House CLARITY Act by introducing ancillary asset definitions, modernized disclosure requirements, and banking provisions that allow financial holding companies to offer digital asset services.

Regulatory framework development

The CLARITY Act directs SEC and CFTC coordination through joint registration processes for platforms listing tokens that meet functional decentralization tests and public float requirements.

Qualifying networks fall outside the securities law scope once they achieve sufficient decentralization metrics.

The legislation establishes token disclosure requirements scaling with market capitalization tiers while requiring issuers conducting US sales to submit initial information statements.

Banking supervisors receive instruction to recognize qualified custodians managing both stablecoins and digital assets under unified segregation and audit standards.

The framework creates coordinated custody requirements for platforms operating spot and derivatives trading under shared regulatory oversight between the two primary federal agencies.

The Senate discussion draft expands these provisions through ancillary asset classifications covering digital tokens that avoid securities designation.

Regulation DA would exempt certain ancillary asset sales from registration requirements for annual proceeds under $75 million, capped over four-year periods.

The proposal refined investment contract definitions under federal law while establishing pre- and post-launch transparency requirements for digital asset issuers.

Senator Lummis emphasized the urgency of regulatory clarity to prevent American innovation migration overseas, stating the legislation will establish clear distinctions between digital asset securities and commodities while modernizing regulatory frameworks.

Senator Hagerty noted that outdated laws and regulatory uncertainty have hindered innovation and left consumers without adequate protections.

Lastly, the Banking Committee issued a Request for Information covering more than 35 topics to support rulemaking processes, with public comments informing final legislation development.

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12 Out Of 18 Democrats May Back Market Structure Bill, Sen. Tim Scott Says https://earlybirdsinvest.com/12-out-of-18-democrats-may-back-market-structure-bill-sen-tim-scott-says/ https://earlybirdsinvest.com/12-out-of-18-democrats-may-back-market-structure-bill-sen-tim-scott-says/#respond Wed, 20 Aug 2025 03:17:05 +0000 https://earlybirdsinvest.com/12-out-of-18-democrats-may-back-market-structure-bill-sen-tim-scott-says/

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Senate Banking Committee Chairman Tim Scott said he believes that 12 out of 18 Democrats will back the Digital Asset Market Clarity (CLARITY) Act during a major crypto symposium stateside on August 19.

A Dozen Dems May Get Behind CLARITY Act, Tim Scott Says

Speaking at the SALT Wyoming Blockchain Symposium 2025 on Tuesday, Scott revealed he predicts that a majority of Democrats will vote in favor of the key crypto legislation.

“I believe that we’ll have at least 12 and 18 Democrats at least open to voting for market structure,” Scott said.

“The forces against it, let me just say clearly, like Senator Elizabeth Warren, standing in the way of Democrats wanting to participate, it is a real force to overcome,” he added.

Key Democrats Push Back On Crypto Legislation

During a recent fireside chat with Subcommittee on Digital Assets Chair Cynthia Lummis (R-Wyo.) and Executive Director of the President’s Council of Advisers on Digital Assets Bo Hines, Scott announced that he was “making sure” the market structure legislation would be completed by September 30.

Meanwhile, the GENIUS Act was officially ratified last month at a White House signing ceremony, where U.S. President Donald Trump praised the landmark stablecoin bill.

“Let me say, the entire crypto community, for years you were mocked and dismissed and counted out,” the president said. “You were counted out as little as a year and a half ago—but this signing is a massive validation.”

Key players in the Democratic Party, however, have pushed back against certain pieces of crypto legislation.

In July, Representative Maxine Waters (D-CA) launched “Anti-Crypto Corruption Week,” where she called both the CLARITY and GENIUS Act “especially dangerous.”

“The CLARITY and GENIUS bills wrap themselves in the flag of innovation, but all they really do is replicate the same mess that led to past financial crises: They call for few regulations, minimal enforcement, weak consumer protections, and more industry consolidation,” Waters said.


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The GOP is ready for a new redistricting war. Democrats are recalculating. https://earlybirdsinvest.com/the-gop-is-ready-for-a-new-redistricting-war-democrats-are-recalculating/ https://earlybirdsinvest.com/the-gop-is-ready-for-a-new-redistricting-war-democrats-are-recalculating/#respond Thu, 31 Jul 2025 18:49:30 +0000 https://earlybirdsinvest.com/the-gop-is-ready-for-a-new-redistricting-war-democrats-are-recalculating/

A new kind of political battle is emerging between America’s parties — one centered on the composition of Congress and congressional redistricting. This process usually occurs every decade, after the US Census finishes its work and releases new demographic information that states use to reconfigure how the 435 seats in the House of Representatives are divided among the 50 states.

But this summer, Texas Republicans are scrambling those norms.

Republican lawmakers are now considering a new proposal for the GOP-controlled legislature to redraw their congressional maps in the middle of the decade to give the national party an advantage in the 2026 midterm elections.

It’s a blatant power play — jump-started by President Donald Trump’s desire to offset potential losses next year and win a bigger Republican majority in the House for the second half of his term. At the moment, it looks likely that Republicans might lose some ground in Congress, as has been the trend for presidents’ parties for the last 70 years.

This mid-decade redistricting effort is not the first time Texas Republicans have aggressively gerrymandered seats to boost their party’s representation in Congress, but it is abnormal for redistricting to happen this early, or as a direct response to a president’s wishes to gain an electoral advantage. And it doesn’t seem like Texas will be the only Republican-controlled state to try this.

This sudden gamesmanship is forcing national and state-level Democrats to consider their own tit-for-tat, mid-decade redistricting efforts — and to confront a harsh reality. Many Democrats lack the political will to bend norms in response to these Republican efforts. And those who do will face steep legal and political obstacles, including from their own party.

Still, that isn’t stopping some Democratic leaders from responding. Their leading voice is California Gov. Gavin Newsom, who has declared that he will redraw his state’s maps to boost Democrats if Texas Republicans move forward with their plan. Govs. Kathy Hochul of New York, Phil Murphy of New Jersey, and JB Pritzker of Illinois have also said they are considering their own responses.

How Republicans are pressing their advantage

Republicans have the upper hand on redistricting. In the majority of states across the country, state legislatures have the primary control and power to draw district lines. That includes the three states where Republicans have signaled they will try to redraw maps before the 2026 midterms — Texas, Ohio, and Missouri — all in which the GOP has unified control of the legislature and the governor’s office.

Through redistricting these states alone, Republicans would be able to gain enough seats to secure a majority after midterm elections. The current plan in Texas would gain them five seats, anywhere from one to three seats in Ohio, and one seat in Missouri. Republicans currently have a three-seat majority in the House, as a result of resignations and deaths, which shrinks to a two-seat majority if all those vacancies are filled.

And there are still more Republican-run states that could be tapped. As Punchbowl News reported this week, five Democratic-held seats could be threatened in Florida if Gov. Ron DeSantis agrees to a mid-decade redraw. And New Hampshire’s governor, Kelly Ayotte, could still be convinced by the White House to consider state Republicans’ past plans to create another Republican-friendly seat in the state.

Other Republican-leaning states — like Indiana, Kansas, Kentucky, and Nebraska — are limited from redrawing maps before 2026 by Democratic governors, more moderate Republican legislators and state courts, or the fact that their legislatures aren’t in session.

Democrats in the three states that will likely create new GOP seats have few options to resist or block redraws. In Texas, Democrats have considered boycotting or preventing the legislature from voting by leaving the state — though Republicans are trying to force them to participate by delaying a vote on flood disaster relief and recovery funding until after their redistricting effort passes. Democrats in Ohio and Missouri have no similar leverage.

That leaves out-of-state Democrats as the next line of defense. But they face obstacles there.

Democrats are limited by their own advocacy

Democrats hoping to strike back have many fewer options. They’re limited by the number of states they control, the way those states handle redistricting, and the political will of legislators who view this kind of redistricting as beyond the pale.

Democrats have unified control in 15 states, out of which they could probably only gain seats in about nine states: California, Colorado, Illinois, Maryland, Minnesota, New Jersey, New York, Oregon, and Washington. But politicians trying to redraw districts in any of these states will face steep hurdles.

In California, Colorado, New York, New Jersey, and Washington, independent or bipartisan commissions have the power to draw congressional maps, not state legislatures. Those commissions were set up after years of bipartisan advocacy for fair representation and liberal activism for better government accountability and transparency. They are enshrined by state law or were set up by state ballot measures, and would require constitutional amendments, a statewide referendum, or court challenges to return redistricting power to the state legislature.

That includes California — the state with the largest population — where the Texas Tribune is reporting that Newsom plans to present the state legislature a new congressional map that flips five Republican-held seats to cancel out Texas’s boost. After the Democratic-dominated legislature approves that plan, it would theoretically be put up as a statewide referendum for voter approval, though Newsom has said that he believes the legislature can pass these changes by itself. Still, Newsom hasn’t publicly confirmed these plans, and he faces bipartisan opposition to his idea.

Other states essentially have prohibitions on mid-decade or early redistricting efforts, Dan Vicuña, a redistricting expert at the government accountability organization Common Cause, told me. The state constitutions of Washington and New Jersey, Vicuña said, contain provisions that limit redistricting to the year immediately following the census, and limit intervention before that time.

That leaves Illinois, Maryland, Minnesota, and Oregon as the Democratic states where early redistricting could likely be accomplished with fewer obstacles. Already, some Maryland Democrats are signaling they would try to squeeze one more Democratic seat by redrawing their district lines. National Democrats have said they’ll try to gain a seat in Minnesota, though they’ll have to wait until state Democrats regain their majority in the senate, where a Democratic lawmaker resigned this week, tying the chamber.

Democrats may have no choice but to try redistricting

For as much bluster as Democrats are making about trying to retaliate, Republicans are actually taking the steps to do early redistricting. Congressional Democrats, for now, are trying to build support among governors and state lawmakers to engage in this political back-and-forth.

According to CNN, House Minority Leader Hakeem Jeffries and his advisers are exploring legal ways to redraw maps in California, New Jersey, New York, Minnesota, and Washington, but those details have yet to be made public. Some Texas state Democrats, meanwhile, traveled to California and Illinois last week to discuss GOP redistricting with the Democratic governors there.

But to stay in the game, Democrats may have to abandon their own rules.

The Trump-era GOP has shown their willingness to push the bounds of political norms and bend institutions. There are valid, long-term concerns about what this kind of ad-hoc redistricting will mean for elections and trust in government in the future — what Vicuña described as a “race to the bottom” — but Democrats, at least in Congress, are accepting that playing fair, or by old norms, isn’t enough.

Update, July 31, 11 am ET: This article was originally published on July 23 and has been updated multiple times with news about California’s potential plans to redraw its congressional maps.

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Senate Democrats Question Housing Agency Over Crypto in Mortgage Plans https://earlybirdsinvest.com/senate-democrats-question-housing-agency-over-crypto-in-mortgage-plans/ https://earlybirdsinvest.com/senate-democrats-question-housing-agency-over-crypto-in-mortgage-plans/#respond Mon, 28 Jul 2025 10:04:06 +0000 https://earlybirdsinvest.com/senate-democrats-question-housing-agency-over-crypto-in-mortgage-plans/

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A group of Senate Democrats is demanding answers from the head of the Federal Housing Finance Agency (FHFA) over a controversial move to consider crypto assets in mortgage assessments.

Key Takeaways:

  • Senate Democrats are pressing FHFA for clarity on plans to include crypto in mortgage assessments.
  • Lawmakers warn the move could pose financial risks due to crypto’s volatility and fraud exposure.
  • Concerns over potential conflicts of interest and lack of transparency are central to the probe.

In a letter sent Friday, five senators led by Jeff Merkley raised concerns about FHFA Director William Pulte’s recent directive instructing Fannie Mae and Freddie Mac to explore how crypto holdings could factor into mortgage risk evaluations without being converted into US dollars.

The letter, co-signed by Senators Elizabeth Warren, Chris Van Hollen, Mazie Hirono, and Bernie Sanders, calls for a detailed explanation by August 7.

“We urge you to fully assess the potential risks and benefits of your order and its implications for the U.S. housing market and financial system,” the senators wrote.

FHFA Rules Require Crypto to Be Converted Before Mortgage Use

The FHFA has overseen Fannie Mae and Freddie Mac since the 2008 financial crisis, when both institutions were placed under federal conservatorship.

Under current policy, crypto holdings must be liquidated into fiat before being considered in mortgage applications.

Pulte’s order, however, signals a possible shift. The senators say such a move “could introduce unnecessary risks to consumers and pose serious safety and soundness concerns for the U.S. housing and financial markets.”

They also warned that crypto’s volatility and history of liquidity issues could jeopardize borrowers’ ability to repay loans.

“Borrowers may not be able to exit a crypto position and convert to cash at a price that would allow them to buffer against risk of mortgage default,” they wrote.

Beyond market risk, the senators cited concerns over scams, cyberattacks, and theft, which they say leave homeowners “vulnerable to losing their crypto assets with little hope of recovery.”

The letter also raised potential ethical concerns. “We are concerned about how the FHFA, Fannie Mae, and Freddie Mac will prevent conflicts of interest,” the lawmakers stated, pointing to former President Donald Trump and his family’s involvement in multiple crypto ventures.

The Trumps reportedly have connections to trading platforms, stablecoins, mining businesses, memecoins, and NFTs.

The senators also took direct aim at Pulte, alleging a potential conflict due to his wife’s crypto holdings, which financial disclosures indicate could be worth up to $2 million.

They argue that Pulte’s dual role as FHFA Director and board chair of both Fannie Mae and Freddie Mac is problematic. “You have stacked those boards with industry allies,” the letter said.

Senators Slam FHFA for Lack of Clarity on Crypto Mortgage Order

The lawmakers criticized the lack of transparency surrounding the order, stating it “includes no information on how Fannie Mae and Freddie Mac would develop a proposal” or how the FHFA would assess risks or collect feedback.

They referenced the 2023 banking crisis, where crypto exposure contributed to the collapse of three banks, as a cautionary tale.

They also noted that in 2021, Fannie Mae concluded that crypto use for deposits, payments, or collateral was the “least appealing application” of blockchain.

The senators asked Pulte to provide internal communications related to the order, details on the approval process, and information on how he plans to address potential conflicts of interest.


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Democrats declare ‘Anti-Crypto Corruption Week’ to counter GOP crypto bills https://earlybirdsinvest.com/democrats-declare-anti-crypto-corruption-week-to-counter-gop-crypto-bills/ https://earlybirdsinvest.com/democrats-declare-anti-crypto-corruption-week-to-counter-gop-crypto-bills/#respond Sun, 13 Jul 2025 08:02:28 +0000 https://earlybirdsinvest.com/democrats-declare-anti-crypto-corruption-week-to-counter-gop-crypto-bills/

US Democratic lawmakers, led by House members Maxine Waters and Stephen Lynch, announced on July 11 that next week will be designated “Anti-Crypto Corruption Week.”

The initiative aims to unite Democrats in opposing several pro-crypto bills that are currently under consideration in Congress, including the GENIUS Act, the CLARITY Act, and a proposed law aimed at preventing the creation of a central bank digital currency (CBDC).

The push against these crypto legislations comes as Washington prepares for the “Crypto Week,” during which lawmakers hope to finalize these bills. Proponents of the proposals argue that they could reshape the crypto landscape and further cement the US’s status as a leader in the sector.

Anti-crypto corruption week

In their joint statement, Waters and Lynch argued that it may lead to fraud and entrench controversial crypto ventures linked to President Donald Trump.

According to Waters, these bills could allow bad actors to exploit the system, furthering Trump’s alleged corrupt activities that have benefited him and his allies financially.

She also criticized the legislation for lacking consumer protections and national security safeguards.

According to her:

“The irony couldn’t be more glaring: the same Republicans who rail against a government-backed digital dollar in the name of ‘freedom’ are now rushing to hand over the keys to Americans’ financial future to Trump’s illegal and corrupt crypto empire.”

Waters concluded that the bills would approve activities undermining trust in the US financial system.

She added:

“Republicans are sending a clear message to the American people that they are unwilling to stand up to the crypto lobby, and even more disturbingly, that they are too cowardly to stand up to the President. Well, Democrats are not afraid, and will spend this week reminding the public of the true cost of this corruption.”

Lynch also echoed similar views in his statement, warning that the Anti-CBDC bill could slow US research into digital currencies, giving countries like China an upper hand in the emerging technology.

He said:

“The volatile and risky nature of crypto products and the lack of investor protections will likely have devastating consequences on Americans’ financial lives, and Congress cannot allow it to undermine our traditional financial markets which are the envy of the world.”

Notably, the Democratic lawmakers’ position is consistent with their broader skepticism toward the crypto industry.

For context, Connecticut’s Democratic-majority legislature recently passed a law banning state agencies from investing in digital assets, which Governor Ned Lamont signed into law.

Nationally, prominent Democrats such as Senator Elizabeth Warren continue to voice concerns about the risks associated with cryptocurrencies, reinforcing the party’s caution towards the emerging sector

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Senate Democrats Target Presidential Stablecoin Profits in GENIUS Act https://earlybirdsinvest.com/senate-democrats-target-presidential-stablecoin-profits-in-genius-act/ https://earlybirdsinvest.com/senate-democrats-target-presidential-stablecoin-profits-in-genius-act/#respond Sat, 24 May 2025 17:08:41 +0000 https://earlybirdsinvest.com/senate-democrats-target-presidential-stablecoin-profits-in-genius-act/

Senate Democrats plan to add new restrictions to a stablecoin regulation bill after concerns about President Donald Trump’s links to cryptocurrencies.

On May 22, Axios reported that Senate Minority Leader Chuck Schumer, along with Senators Elizabeth Warren and Jeff Merkley, will introduce an amendment to the GENIUS Act.

Their goal is to prevent a US president from earning money through stablecoins.

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Senator Merkley shared on X that if the bill passes without the amendment, it would send a message that Congress supports President Trump using his influence for personal benefit.

Merkley and Warren are especially focused on President Trump’s involvement with a personal meme coin and the event he recently hosted. On May 22, President Trump held a private dinner at his golf club in Virginia for around 220 people who bought large amounts of the Official Trump (TRUMP) token.

Senator Murphy joined Warren, Merkley, and the group Public Citizen at a press event, where they urged President Trump to release the full guest list. They warned that such private meetings could allow wealthy crypto holders to buy influence.

The proposal to amend the GENIUS Act comes after 18 Democrats joined Republicans to push the bill forward on May 20. It had previously failed to pass a procedural vote on May 8. The bill is designed to create a legal framework for payment stablecoins, but some lawmakers say it needs more rules to prevent personal gain by public officials.

Meanwhile, Kevin O’Leary, known for his role on Shark Tank, criticized Senator Warren’s comments on the GENIUS Act. What did he say? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


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Democrats Push to Amend GENIUS Act Due to Trump’s Crypto Ties https://earlybirdsinvest.com/democrats-push-to-amend-genius-act-due-to-trumps-crypto-ties/ https://earlybirdsinvest.com/democrats-push-to-amend-genius-act-due-to-trumps-crypto-ties/#respond Fri, 23 May 2025 22:51:37 +0000 https://earlybirdsinvest.com/democrats-push-to-amend-genius-act-due-to-trumps-crypto-ties/

The United States government is close to enacting its first crypto legislation, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. However, Democratic lawmakers are pushing to include protections against corruption from public officials, especially the family of President Donald Trump.

According to a report from Axios, a group of senators insists the bill needs to be amended to prevent Trump and his inner circle members from profiting from stablecoins and selling influence to the highest bidder.

Senators Push to Amend GENIUS Act

The GENIUS Act will establish the first regulatory framework for stablecoins in the U.S. Senator Bill Hagerty introduced the bill in February, with co-sponsorship from Senators Kirsten Gillibrand and Cynthia Lummis.

If enacted, the bill will establish a federal licensing and supervisory framework for stablecoins, requiring their issuers to undergo regular security audits. The legislation will limit stablecoin issuance to licensed entities and prohibit trading assets that are not fully backed.

Before the bill passed in the Senate earlier this week, Democrats had raised concerns about potential conflicts with Trump’s crypto investments. Although they had previously withdrawn their support, most of them, except for Senate Minority Leader Chuck Schumer, eventually voted yes.

Concerns Over Trump’s Crypto Ventures

With the GENIUS Act a few steps away from becoming law, Democrats once again insist that amendments be made to include protections against corruption. Senators Jeff Merkley, Elizabeth Warren, and Schumer are pushing to file the amendment before the legislation passes the Senate.

Senators Gary Peters, Jack Reed, Chris Murphy, and Michael Bennet are co-sponsoring the amendment. Although most of these lawmakers have voted in favor of the bill, sources familiar with the matter revealed that they may withdraw their support if the legislation lacks protections against corruption.

As the push for amendment continues, Senator Mark Warner, a Democrat, insists the bill should be passed regardless of concerns about the Trump family. He said the possibility of corruption should not blind the U.S. government to the broader reality that blockchain technology is here to stay.

These concerns come as the Trump family’s crypto business, World Liberty Financial (WLFI), launches a new stablecoin, USD1. The asset has already scored a deal to become the settlement currency for Abu Dhabi-based MGX’s $2 billion investment in crypto exchange Binance.

Meanwhile, top Democrat lawmakers have launched an investigation into Trump’s crypto venture over concerns of illegal fundraising, abuse of political power, and foreign influence.

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Democrats Demand Treasury Files on Trump-Linked Crypto Activity https://earlybirdsinvest.com/democrats-demand-treasury-files-on-trump-linked-crypto-activity/ https://earlybirdsinvest.com/democrats-demand-treasury-files-on-trump-linked-crypto-activity/#respond Sun, 18 May 2025 16:56:50 +0000 https://earlybirdsinvest.com/democrats-demand-treasury-files-on-trump-linked-crypto-activity/

Three Democratic members of Congress are requesting the US Treasury for records related to crypto projects linked to President Donald Trump.

In a letter dated May 14, Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin called on Treasury Secretary Scott Bessent to hand over all suspicious activity reports (SARs) filed since 2023 that mention World Liberty Financial (WLFI) or the OFFICIAL TRUMP token (TRUMP).

Banks and other financial firms are required to submit SARs to the Financial Crimes Enforcement Network (FinCEN) when they notice transactions that might involve illegal activity, such as fraud or money laundering.

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The lawmakers are also asking for any reports that mention a list of names and organizations, including President Trump himself, Melania Trump, WinRed (the Republican fundraising platform), Elon Musk, Justin Sun, and several political action committees (PACs). They set a deadline of May 30 for the Treasury to respond.

The lawmakers explained they want to assess whether new laws are needed to stop potential violations of campaign finance rules, protect consumers, and prevent bribery or securities fraud.

One part of the letter points to concerns about the WLFI token sales. Some of those tokens were sold to overseas buyers, who often face fewer rules than US investors.

Additionally, the letter asks for SARs involving WinRed and a political group backed by Elon Musk, which reportedly donated $250 million to President Trump’s campaign.

The TRUMP token is another focus. The lawmakers say that since the buyers’ identities are not public, there is a risk that some people could try to gain favor with President Trump by purchasing large amounts of the token without being noticed.

Justin Sun’s role is also under the spotlight. He invested in WLF, and while the SEC had filed a case against him for allegedly breaking securities laws, that case is currently on hold.

On April 24, Democratic Senators Elizabeth Warren and Adam Schiff requested an ethics investigation after President Trump offered private access to holders of the TRUMP token. What did they say? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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US Senators Criticize Democrats For ‘Partisan Politics’ Amid Stablecoins Bill Failure https://earlybirdsinvest.com/us-senators-criticize-democrats-for-partisan-politics-amid-stablecoins-bill-failure/ https://earlybirdsinvest.com/us-senators-criticize-democrats-for-partisan-politics-amid-stablecoins-bill-failure/#respond Sat, 10 May 2025 07:55:45 +0000 https://earlybirdsinvest.com/us-senators-criticize-democrats-for-partisan-politics-amid-stablecoins-bill-failure/

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On a negative development for the US crypto industry, the highly anticipated stablecoins legislation has failed to advance in the US Senate after not receiving enough support from Senate Democrats. Several Republican senators have slammed the Democratic lawmakers for putting “partisan politics above policy.”

Democrats Block Stablecoins Bill

On Thursday, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act failed to pass the cloture vote in the US Senate after several lawmakers withdrew their support in the past week.

As reported by Reuters, only 49 senators voted to advance the bill, falling short of the 60 votes required to end the debate on the legislation. Notably, two Republican senators voted against advancing the bill alongside Democrats.

In February, US Senator Bill Hagerty introduced the GENIUS Act to develop a framework to allow tokens like USDT and USDC to fall under the Federal Reserve Rules.

The bill, co-sponsored by Senators Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks, would establish a “safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto.”

The stablecoins legislation was considered a bipartisan effort to increase regulatory clarity after multiple Democrats showed support over the past few months. Additionally, the bill went through various amendments to address senators’ concerns, including stricter requirements for stablecoin issuers and Anti-Money Laundering (AML) provisions.

Nonetheless, ten Senate Democrats expressed further concerns about the revised version of the bill on May 3, reportedly catching many lawmakers off guard. Among the critics, four Democrats who previously supported the bill signed the opposition statement.

The lawmakers alleged that the draft bill omitted essential AML and national security safeguards and had ambiguous regulations that could expose crypto markets to exploitation.

Similarly, Senator Elizabeth Warren urged Congress to reject the GENIUS Act as it could pave the way for alleged “crypto corruption.” On May 4, the crypto-skeptic lawmaker claimed that the Trump family could benefit from World Liberty Financial’s (WLFI) USD1 stablecoin deal with MGX, a firm based in the United Arab Emirates.

The deal comprises a $2 billion investment connected to Binance and WLFI’s stablecoin. Warren affirmed that the Senate shouldn’t approve the crypto bill “to enable this type of corruption.”

US Senators Call Out ‘Political Gamesmanship’

One of the bill’s co-sponsors, Senate Banking Committee Chairman Tim Scott, called out Democrats for “playing politics with bipartisan legislation.” Speaking on the Senate floor on May 8, Scott accused Senate Democrats of putting partisan politics above policy and innovation.

It should have been a historic day for Americans (…) to see their financial system democratized (…). Instead, we witnessed a disappointing display of political gamesmanship that puts partisan politics above policy, and obstruction above innovation.

He affirmed that the GENIUS Act was a bipartisan achievement at the Senate Banking Committee, adding that the shift was not driven by a change in the bill’s “substance.” He alleged that the failure wasn’t a vote against the legislation, but a vote against President Trump and his legislative agenda.

Senator Lummis also expressed her disappointment on X: “Make no mistake, digital assets are the future and America must lead the way,” she stated, adding that “It’s important that we continue moving digital asset legislation forward that preserves America’s dollar dominance and makes America the crypto capital of the world.”

Meanwhile, Treasury Secretary Scott Bessent argued that the world needs American leadership for stablecoins and other digital assets to thrive. He criticized the Senate for missing “an opportunity to provide that leadership” by passing the bill.

“Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness. The world is watching while American lawmakers twiddle their thumbs. Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore,” he concluded.

Stablecoin, bitcoin, btc, btcusdt

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