Progressive Group Slams Democrats for Supporting Industry-Backed Crypto Bill

Amid indications that the U.S. Senate may soon vote on a measure aimed at establishing guidelines for stablecoins, a type of cryptocurrency, Our Revolution, on Wednesday, expressed strong disapproval. They accused the Democrats of aiding a bill that would likely serve the financial interests of former President Donald Trump.

Joseph Geevarghese, the executive director of Our Revolution, articulated on Wednesday that the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is essentially a feeble and ineffective piece of legislation. According to him, it is a facade orchestrated by the powers in the cryptocurrency sector to enrich Donald Trump’s crypto business endeavors. Our Revolution began as an extension of Sen. Bernie Sanders’ (I-Vt.) 2016 presidential campaign and continues to operate as a progressive political organization.

“To put it plainly,” Geevarghese remarked, “the Democrats are deeply involved in this deception, with Sen. Kirsten Gillibrand (D-N.Y.) at the forefront as the principal sponsor of the bill. We urge every senator who values democracy to oppose this blatant giveaway to the cryptocurrency sector.”

Common Dreams sought a response from Gillibrand’s office.

The bipartisan initiative also saw initial sponsorship from Sen. Tim Scott (R-S.C.), Sen. Cynthia Lummis (R-Wyo.), and Gillibrand, with Sen. Angela Alsobrooks (D-Md.) joining as a co-sponsor later on.

The GENIUS Act, favored by the cryptocurrency industry, would simplify processes for U.S. companies dealing in stablecoin, as reported by the The New York Times.

Several Democratic senators who are typically supportive of crypto initiatives initially endorsed the GENIUS Act but withdrew their support over the weekend. They cited the need for stronger measures concerning anti-money laundering, national security, and other concerns. “Although we remain committed to collaborating with our colleagues to resolve these issues, we cannot support moving forward with the current draft of the bill,” stated the group, excluding Alsobrooks and Gillibrand, in a Saturday release.

A spokesperson for Alsobrooks communicated to The American Prospect on Monday that during the Senate Banking Committee markup, Democrats were assured that their concerns would be addressed. Alsobrooks supports the ongoing efforts to enhance the bill, according to the spokesperson.

Due to possible Republican opposition, the bill might require support from at least 10 Democrats to advance in a procedural vote, as per Axios.

Moreover, on Tuesday, Sen. Jeff Merkley (D-Ore.) and Senate Minority Leader Chuck Schumer (D-N.Y.) introduced the End Crypto Corruption Act. This proposal aims to prohibit the president, vice president, members of Congress, and their immediate families from issuing digital assets like stablecoins. Gillibrand has endorsed this bill as a co-sponsor.

Opponents of the GENIUS Act, including Sanders and Sen. Elizabeth Warren (D-Mass.), argue that it would enable illicit activities and compromise consumer protections. Sanders highlighted on Tuesday that the GENIUS Act “facilitates corrupt dealings by President Trump and his family through their involvement in cryptocurrency, greatly benefiting them and their affluent tech backers.”

Democratic officials are alarmed by a recent disclosure involving Trump and cryptocurrency—that a stablecoin issued by a Trump-affiliated entity, World Liberty Financial, will be used in a $2 billion deal by an Emirati state-owned investment company.

Despite some reports suggesting that Trump’s involvement in cryptocurrency might hinder the passage of the GENIUS Act, Lisa Gilbert, co-president of Public Citizen, commented on Wednesday, “Everything indicates that Donald Trump is exchanging deregulation for personal and political gain.”

“Cryptocurrency played a role in Trump’s election, and now it’s aiding in the accumulation of millions to his personal wealth,” Gilbert concluded.