On May 19, 16 Democratic senators broke party lines to advance stablecoin legislation in the Senate, despite earlier concerns over corruption related to President Trump’s cryptocurrency dealings. The lightly amended bill, lacking provisions for Trump’s crypto venture, faced backlash from some party members. Senator Mark Warner noted it was a necessary compromise for regulatory clarity, while Senator Elizabeth Warren, a critic of the bill, argued it threatens national security and consumer protection. Progressives expressed outrage, suggesting that supporting senators should be challenged in the upcoming primaries. Meanwhile, Senator Michael Bennet introduced a competing bill to prohibit Congress members from engaging in digital asset advocacy during their term, highlighting the growing divide within the Democratic Party on crypto regulation. This division mirrors previous tensions over spending resolutions and immigration policy, reflecting a rift between progressive activists and centrist lawmakers. As stablecoin legislation progresses, internal conflicts could hinder the Democratic Party’s ability to oppose it effectively.

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