Progressive Group Rebukes Democrats for Being 'Fully Complicit' in Industry-Backed Crypto Bill

As the Senate is reportedly poised to hold a Thursday procedural vote on legislation that would create a regulatory framework for a type of cryptocurrency called stablecoin, the group Our Revolution released a statement Wednesday denouncing Democrats for being "complicit" in the bill, which they say will likely enrich U.S. President Donald Trump.

Joseph Geevarghese, executive director of Our Revolution, said in a Wednesday statement that the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is a "laughably weak and toothless regulatory bill—a sham crafted by cryptocurrency giants that is certain to line the pockets of the Trump family's crypto empire." Our Revolution is a progressive political organizing group launched as a continuation of Sen. Bernie Sanders' (I-Vt.) 2016 presidential campaign.

"Let's be clear," Geevarghese continued, "Democrats are fully complicit in the grift, with Sen. Kirsten Gillibrand (D-N.Y.) leading the charge as the bill's original sponsor. We call on every senator who still gives a damn about democracy to shut down this outright sellout to the cryptocurrency industry."

Common Dreams reached out to Gillibrand's office for comment.

The bipartisan bill was originally co-sponsored by Sen. Tim Scott (R-S.C.), Sen. Cynthia Lummis (R-Wyo.), and Gillibrand. Later, Sen. Angela Alsobooks (D-Md.) became a co-sponsor as well.

The GENIUS Act, which is backed by the crypto industry, would make it easier for U.S. firms to do business in stablecoin, according to the The New York Times.

Several other crypto-friendly Democrats in the Senate had backed the GENIUS Act, but over the weekend pulled their support, citing a desire for stronger provisions on anti-money laundering, national security, and other issues. "While we are eager to continue working with our colleagues to address these issues, we would be unable to vote for cloture should the current version of the bill come to the floor," wrote the group, which did not include Alsobrooks and Gillibrand, in a statement on Saturday.

A spokesperson for Alsobrooks toldThe American Prospect on Monday that at the Senate Banking Committee markup, "Democrats received commitments to address concerns about the bill. Those commitments should be honored, and she supports her colleagues in their efforts to further improve the bill."

The bill may need as many as 10 Democrats to clear a procedural vote due to potential defections on the GOP side, according to Axios.

Meanwhile, on Tuesday, Sen. Jeff Merkley (D-Ore.) and Senate Minority Leader Chuck Schumer (D-N.Y.) unveiled the End Crypto Corruption Act, a proposal that would bar the president, vice president, members of Congress, and their immediate families from issuing digital assets, like stablecoins. Gillibrand has joined that bill as a co-sponsor.

Critics of the GENIUS Act, like Sanders and Sen. Elizabeth Warren (D-Mass.), warn it would facilitate illicit activity and undermine consumer protection. Sanders warned on Tuesday that the GENIUS Act "makes it easier for President Trump and his family to continue to engage in corrupt dealmaking enabled through their cryptocurrency, to the great benefit of themselves and their tech oligarch backers."

Democratic lawmakers have voiced concern about a recent Trump crypto revelation—that a stablecoin created by the Trump-affiliated World Liberty Financial crypto venture will be used to complete a $2 billion transaction by an Emirati-state owned investment firm.

And while some reporting suggests that Trump's crypto maneuvers are actually harming the chances that the GENIUS Act will pass, Public Citizen co-president Lisa Gilbert said Wednesday that "all available signs point to Donald Trump trading deregulation of the crypto industry in exchange for personal and political enrichment."

"Crypto helped elect Trump, and now they are helping him add millions to his personal bank account," Gilbert added.