Senate Democrats Block GENIUS Act in 48-49 Vote Over Trump's $2 Billion Crypto Deal with World Liberty Financial

The U.S. Senate failed to advance the GENIUS Act, a key piece of legislation aimed at establishing a regulatory framework for stablecoins, in a 48-49 vote. The bill, which had previously enjoyed bipartisan support, faced opposition from Democrats over concerns related to President Donald Trump's involvement in cryptocurrency ventures. Senate Democrats, including Elizabeth Warren and Chuck Schumer, blocked the procedural vote, citing potential conflicts of interest due to Trump's family business dealings with cryptocurrencies. The opposition came after a $2 billion deal involving a Trump-linked stablecoin and a UAE-backed firm, World Liberty Financial, was announced, raising ethical concerns among Democrats. The End Crypto Corruption Act and the MEME Act were introduced to address these concerns. The GENIUS Act, proposed by Senators Bill Hagerty, Tim Scott, Kirsten Gillibrand, and Cynthia Lummis, sought to regulate stablecoins by requiring issuers to maintain 100% reserves and adhere to strict consumer protection standards. The failure to pass the procedural vote, which needed 60 votes to advance, has cast doubt on the future of stablecoin regulation in the U.S. In response to the vote, Senate Majority Leader John Thune criticized Democrats for moving the goalposts and obstructing the bill's progress. Treasury Secretary Scott Bessent also expressed disappointment, stating that the Senate missed an opportunity to lead in global financial innovation. The White House had been optimistic about an August Rose Garden signing ceremony for key crypto legislation, but this setback might prompt a shift in priorities. Additionally, the influence of crypto super PACs on future political strategies was highlighted.