World Liberty's new stablecoin could become an obstacle in talks with Democrats

Even some of the industry's most ardent supporters in Congress are acknowledging that World Liberty's latest move could become an obstacle in talks with Democrats.

Even some of the industry’s most ardent supporters in Congress are acknowledging that World Liberty’s latest move could become an obstacle in talks with Democrats.

“It shouldn’t make life harder, but it might,” said Sen. Cynthia Lummis, R-Wyo., who has played a leading role in crafting the legislation aimed at boosting the crypto sector.

The legislation has garnered bipartisan support, teeing it up to become the first major crypto reform ever passed by Congress. At least three Democrats are already supporters in the House, but concerns from Waters, a long-time Trump foe and critic of the president’s crypto business ventures, could imperil broader support from her side of the aisle.

A spokesperson for House Financial Services Republicans, Brooke Nethercott, said in a statement that the panel “looks forward to continuing our work” on stablecoins.

“If we want clear standards in this market, the status quo is not the answer,” she said. “Several members on both sides of the aisle have been working to provide clear regulatory guidelines to allow payment stablecoins to flourish in the United States.”

It remains unlikely that the concerns over the Trumps’ new stablecoin will jeopardize Republicans’ ultimate ability to pass crypto legislation. Democrats have expressed concerns about Trump’s past moves on crypto, but have gone on to vote for industry-friendly legislation anyway. Supporters of the effort in the party say new, light-touch rules are needed for digital assets, even as the Trump family could benefit from the regulatory changes. The bipartisan support for crypto despite the Trump controversies is a sign of the industry’s growing political clout in Washington, where it has spent hundreds of millions of dollars in recent years to lobby and boost candidates who support its cause.

“You need the regulation regardless, but it’s certainly not helpful,” Sen. Kirsten Gillibrand said of the Trump company stablecoin launch. The New York Democrat helped write a stablecoin bill that is awaiting a Senate floor vote.