Senate Divided Over Stablecoin Bill as Trump Pushes Forward, Stirring Democratic Tensions

The U.S. Senate took a significant step toward cryptocurrency regulation on Monday, advancing a stablecoin bill that has sparked deep divisions—especially within the Democratic Party. While the proposal received bipartisan support, the underlying debate revealed broader concerns about political influence, financial oversight, and former President Donald Trump’s growing sway over digital asset policy.

Historic Vote Moves Stablecoin Bill Forward

In a 66-32 vote, the Senate approved a procedural measure to move ahead with a bill aimed at regulating stablecoins—cryptocurrencies pegged to the U.S. dollar. Supporters hailed the vote as a landmark moment, representing the first substantial bipartisan push toward formalizing crypto oversight in the U.S.

However, despite the numbers, consensus remained elusive. Many Democrats appeared visibly uncomfortable, not because of the bill’s content, but due to its political implications. Trump’s well-known advocacy for cryptocurrency, coupled with alleged connections to crypto-linked ventures, loomed large during the Senate session.

Democratic Rift Widens Despite Bipartisan Show

Sixteen Democratic senators broke ranks to support the bill, including prominent figures like Kirsten Gillibrand, Cory Booker, and Adam Schiff. Co-sponsored by Gillibrand and Republican Senator Bill Hagerty of Tennessee, the bill aims to bring regulatory clarity to a sector long described as the “Wild West” of finance.

Gillibrand defended the legislation as a necessary evolution, saying it brings structure and oversight to a space currently dominated by risk and speculation. Still, her support wasn’t without controversy, particularly within her own party.

On the Republican side, the opposition mainly came from libertarian-leaning senators such as Rand Paul and Jerry Moran, who voiced concern over increased federal involvement in decentralized financial systems—an expected stance given their historical views.

Warren Raises Alarms Over Trump Ties

The most striking opposition came from Senator Elizabeth Warren, who delivered a scathing critique of the bill. Without naming Trump directly, Warren accused “the President” of leveraging the crypto sector for personal and political gain. Her speech, laced with warnings of corruption and financial instability, drew sharp reactions throughout the chamber.

“This legislation doesn’t just open the door to stablecoins,” Warren said, “it opens the floodgates to unchecked influence, potential national vulnerabilities, and systemic risk.”

Observers noted a tense interaction between Warren and Gillibrand on the Senate floor, a quiet but intense exchange that seemed to crystallize the ideological fault lines within the party.

Democrats Tread Carefully

Even Democrats who supported the bill expressed reservations. Senator Mark Warner, a key contributor to the legislation’s compromise language, emphasized the need for vigilance despite his vote in favor. “The Trump family’s known involvement with crypto ventures is troubling,” he acknowledged. “But ignoring the technology won’t eliminate the threat. This bill at least provides a regulatory framework we can build on.”

Eyes Turn to the House as Trump Awaits

With Senate approval in place, the bill now moves to the Republican-controlled House of Representatives, where Trump-aligned lawmakers are expected to act swiftly. A similar version has already passed through the House Financial Services Committee, and momentum appears to be building toward a final vote and presidential approval.