Senator Kirsten Gillibrand, a Democrat, has played a key role in the GENIUS Act, a bipartisan bill aimed at regulating stablecoins in the US. Despite her position as a lead co-sponsor, her involvement in passing the bill has raised some controversy.
During an investigation into campaign finances in the 2024 federal election cycle, it was discovered that individuals linked to major crypto firms, such as Coinbase, Ripple, Uniswap Labs, Andreessen Horowitz, and dYdX Trading, collectively donated over $200,000 to Senator Gillibrand's campaign.
The GENIUS Act, which focuses on stablecoins, progressed in the Senate with a procedural vote known as cloture, aimed at limiting debate and preventing a filibuster. To pass, the bill requires approval from 60% of senators present, and further Senate voting is needed for its final approval. Senator Gillibrand led the initiative, securing support from 16 Democrats to move the bill forward.
Despite initial setbacks, Senator Gillibrand's efforts have been vital in garnering Democratic backing for the bill at each stage. However, her ties to the crypto industry have raised concerns about her motivations for pushing the bill. Contributions to Gillibrand’s campaign came from individuals associated with companies like Coinbase, Ripple, and Uniswap Labs. OpenSecrets data revealed these donations, which totaled $217,000 from various crypto entities, indicating a potential influence on her advocacy for the bill.
Concerns over impartiality have been raised, questioning whether financial support from the crypto industry could sway legislators' decisions on legislation with direct impacts on these donors.