As the US Senate prepares to revisit the GENIUS Act—a bill aimed at regulating stablecoins—uncertainty lingers about whether lawmakers can overcome political hurdles tied to former President Donald Trump’s involvement in the crypto space. Paul Grewal, Chief Legal Officer at Coinbase, shared his insights on these challenges during the Consensus conference in Toronto on May 15.
Grewal highlighted that although the Senate Banking Committee advanced the GENIUS Act in March, the path forward has encountered bumps. Part of the tension stems from deep divisions over how to shape this landmark legislation, but there’s also an added layer of complexity due to Trump’s crypto ventures, including his support for certain memecoins and other digital asset projects.
“The association with the former president’s crypto endorsements and ventures brings a unique challenge in bridging the divide between Democrats and Republicans on how to properly regulate the spot crypto market,” Grewal explained. Yet, he remains optimistic, expressing confidence that Congress will eventually find common ground.
This skepticism isn’t unfounded. Key Democratic figures, such as Senator Elizabeth Warren, have openly criticized the Trump family’s cryptocurrency initiatives—specifically pointing to World Liberty Financial and its stablecoin, USD1—as problematic elements complicating bipartisan support for the bill.
Meanwhile, some senators backing the GENIUS Act, including Senator Kirsten Gillibrand, who helped introduce an earlier version, have indicated plans to remove or soften provisions that directly reference Trump’s crypto activities. This move aims to smooth over disagreements and expedite the legislation’s passage.
Despite these ongoing debates, sources like Punchbowl News reported on May 15 that Democrats had secured important concessions on consumer protections, anti-money laundering measures, and national security provisions. These assurances have reportedly bolstered their willingness to move forward with a vote in the Senate within the coming days.
Beyond the stablecoin framework, there’s also attention on broader regulatory efforts targeting digital assets. The House of Representatives is reviewing a separate draft focused on digital asset market structure, seen as a follow-up to last year’s FIT21 bill. However, this legislation has faced pushback similar to that encountered by the GENIUS Act—again, largely due to concerns over “crypto corruption” linked to Trump and his network.
Grewal commented on the evolving legislative landscape, noting, “We’re about to learn a lot in the next few days about the appetite among lawmakers to address these complex issues—and whether they can keep pace with the ambitious timelines laid out by the White House and congressional leaders.”
For Coinbase and the broader crypto industry, clarity and regulatory certainty are crucial. Stablecoins currently hold a central position in the digital asset ecosystem, and how Congress shapes the GENIUS Act could set important precedents for future crypto legislation.
As the political chess game unfolds, one thing is clear: Trump’s ties to crypto remain a significant wildcard that lawmakers will need to carefully navigate if they want to enact effective and balanced rules for the rapidly growing stablecoin market.
