Key senators expect a bipartisan bill to regulate stablecoins to pass soon, without provisions aimed at Trump’s crypto profits. Senator Gillibrand mentioned refinements to consumer protection measures but dismissed Trump’s ethical issues as unnecessary to the bill’s focus. Coinbase’s Armstrong supports the separate consideration of stablecoin legislation from broader crypto reforms.
Senators are anticipating the passage of a bipartisan bill aimed at establishing rules for stablecoins, which are cryptocurrencies pegged to traditional assets like the US dollar. Key figures involved in crafting this legislation expressed confidence on Wednesday that it could be approved by the end of next week, notably without any provisions meant to address possible crypto profits linked to former President Trump and his family.
The Senate’s efforts to advance this legislation fell apart last week when lawmakers who favoured crypto were unable to finalise revisions sought by Democrats. These Democrats had pushed for measures that would prevent Trump from profiting from a meme coin and stablecoin associated with him. Senator Cynthia Lummis, a Republican from Wyoming, indicated her belief that there’s merit in aiming for such a provision, speaking during an event featuring Coinbase CEO Brian Armstrong, alongside Senator Kirsten Gillibrand from New York.
According to sources familiar with the negotiations, the primary architects of the bill have settled on the legislation’s text. However, the exact content of these modifications remains largely undisclosed. Gillibrand mentioned that the proposed bill has shifted closer to reflecting Democratic priorities. “When this language comes out, you will see really good refinements, a lot of progress,” she stated, highlighting elements like consumer and bankruptcy protections as areas of improvement.
Nevertheless, Gillibrand confirmed that the current legislation will not include any measures targeting Trump’s cryptocurrency earnings. Senator Ruben Gallego from Arizona echoed these sentiments last week, indicating a similar stance on the issue.
Gillibrand noted, “A lot of what President Trump’s engaged in is already illegal.” She expressed confidence that the bill wouldn’t need to address ethical problems related to Trump. Instead, it aims to comprehensively regulate the stablecoin segment of the cryptocurrency market. She did assert that the bill would enforce ethics mandates, which she described as robust. However, she clarified that these ethics measures are not the primary focus of the bill, which would encompass much broader regulatory aspects.
When questioned about Trump’s crypto business and its ramifications for bipartisan support, Armstrong chose to sidestep the topic. “Anyone should be able to sell artwork or coffee mugs or whatever. Now, is it good for the president to do it? I’m going to leave that for others to opine on,” he said. Armstrong emphasised that maintaining focus on regulating stablecoins should be the priority of the upcoming legislation.
Armstrong also remarked that Coinbase had initially hoped Congress would tackle stablecoin legislation in tandem with a wider reform of cryptocurrency regulations. However, he now supports the Senate’s move to address these issues separately. “We were a little worried about the nuance between the two bills getting lost,” he explained. Yet, he confirmed that Coinbase is fully behind the Senate’s decision to prioritise stablecoin legislation ahead of broader regulatory changes.
