The Senate stablecoin bill vote has ignited divisions within the Democratic Party, with concerns about corruption becoming the focal point of controversy.

Source: Cointelegraph Original text: "The Senate Stablecoin Bill Vote Sparks Division Within the Democratic Party, Anti-Corruption Concerns Become the Focus of Controversy"

Democratic senators in the United States faced criticism after assisting in pushing stablecoin legislation into the Senate discussion stage.

On May 19, 16 Democratic senators broke party lines to pass a motion to end debate, allowing the bill to be debated on the Senate floor. Some of these Democrats had retracted their support earlier in May due to concerns that President Trump's cryptocurrency transactions involved corruption, leading to a temporary halt of the bill.

Opponents of the bill initially praised lawmakers for refusing to support it, but soon expressed shock at the senators' change of position. The slightly amended bill does not include any provisions regarding the Trump family's cryptocurrency venture, World Liberty Financial.

Some activists have stated that Democrats who support the bill should be eliminated in the upcoming Democratic primaries in 2026, reflecting the growing divide within the Democratic Party on the issue of cryptocurrency.

On May 19, moderate Democratic Senator Mark Warner announced that he would support the bill, stating that the bill "is not perfect, but far better than the status quo."

Warner set aside concerns about corruption, stating: "Many senators, including myself, have very substantive concerns about the Trump family's use of cryptocurrency to evade regulation [...] but we cannot allow this corrupt behavior to distract us from the broader reality: blockchain technology has irreversibly established itself in our society."

Warner concluded that the United States' push for imperfect stablecoin legislation is better than falling behind other jurisdictions.

Democratic Senator Kirsten Gillibrand, one of the sponsors of the bill, has also set aside concerns about Trump's corruption, stating that these issues should be addressed separately.

"Many activities involving President Trump are already illegal," she stated, adding that she does not want the president's scandal "to distract us from our important goal of establishing a clear regulatory framework in the United States that can enable the industry to grow domestically."

During the voting process, progressive Democrats expressed differing opinions. According to reports, Senator Elizabeth Warren, a senior Democratic member of the Senate Banking Committee and a vocal critic of the crypto industry, had a heated argument with Gillibrand on the Senate floor.

Warner argued in the Senate debate before the vote: "A bill to accelerate the development of the stablecoin market, while also fueling presidential corruption and harming national security, financial stability, and consumer protection, is worse than having no bill at all."

Democrats opposing the bill have not given up their resistance. Colorado Senator Michael Bennett immediately introduced another bill after voting against the GENIUS Act, humorously named the "STABLE GENIUS Act"(STABLE GENIUS Act), which combines the names of the Senate and House bills.

The bill will prohibit the President, Vice President, and members of Congress from "issuing or endorsing digital assets" and require them to place any assets they hold in a blind trust during their tenure.

Although the likelihood of the bill passing is extremely low—many past bills limiting the financial activities of congressional members have died without result—it clearly illustrates the significant divisions within the Democratic Party on how to provide an effective opposition.

Progressives and activists within the Democratic Party have strongly criticized the congressional leadership for compromising with Republicans on what they believe should be principled issues.

In March, when New York Democratic Senator and Senate Minority Leader Chuck Schumer voted with Republicans on the government funding continuing resolution, activists were outraged. A progressive observer accused him of giving up negotiating leverage and weakening the Democratic position.

Subsequently, in April, the divisions within the party deepened further regarding how the Democratic Party should respond to Trump's mass deportation policy.

Today, cryptocurrency has become another point of divergence between the activist camp (who play a key role in voter mobilization during elections) and the centrist members of Congress.

Ezra Levin, co-founder and co-executive director of the progressive activist organization Indivisible, wrote on the BlueSky platform:

Communication strategy expert Mushahid Zahir, who has served in the offices of Senator Harry Reid and Representative Louise Slaughter, urged the public to call their senators to express opposition to the bill.

"Any Democrat who votes in favor of this bill today—if they continue to send emails, texts, or make videos talking about Trump's corruption—should never be taken seriously again," he said.

Chris Kluwe, a former American football player turned well-known activist in the Democratic political circle, sarcastically said on May 20: "I look forward to speaking at the California State Democratic Convention on May 31, and I'm sure that the bill will not be mentioned at all during my assigned 4 minutes."

On the BlueSky platform, labor researcher and media law historian Peter Labuza responded to a post listing 16 Democratic senators who support the bill, directly posting the "primary list."

The issue of internal primaries within the party, which determines who will represent the party in a specific electoral district, has also become increasingly controversial.

On May 12, the Democratic National Committee (DNC) voted to reject the internal party vote to nominate David Hogg for vice chair. This decision effectively stripped Hogg of his position within the DNC and his ability to advocate for the controversial policy of supporting progressive challengers in the Democratic primaries.

Hogg had planned to invest $20 million as part of the "We Deserve Leaders" campaign to support progressive and young candidates in the Democratic primary – this activist organization aims to elevate young leaders who take a tougher stance against the Trump administration.

As the stablecoin bills in the House of Representatives and the Senate are about to advance, the Democrats seem to struggle to organize an effective opposition. The power struggles and conflicts of interest within Congress have divided lawmakers, while activists hope that the next session will bring a new batch of congressional representatives who can truly represent them.

So far, the pro-crypto pragmatists have the upper hand in the struggle between the anti-crypto progressives and pro-crypto pragmatists within the Democratic Party.

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