U.S. Senate Blocks GENIUS Act in 48-49 Vote, Stalling Stablecoin Regulation Amid Trump's Crypto Corruption Concerns
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The U.S. Senate's attempt to advance the GENIUS Act, a pivotal piece of legislation aimed at regulating stablecoins, was thwarted on Thursday, May 8, 2025. The bill, which had previously garnered bipartisan support, failed to pass a key procedural vote with a tally of 48-49, falling short of the 60 votes needed to move forward. The vote was largely split along party lines, with all Democrats opposing the measure, including 42 nay votes.
The GENIUS Act sought to establish a federal regulatory framework for stablecoins, digital currencies pegged to assets like the U.S. dollar. The legislation's failure has been attributed to last-minute Democratic defections, driven by concerns over rushed revisions and regulatory gaps. Senate Democrats, including Sen. Mark Warner, expressed dissatisfaction with the bill's incomplete state, citing the absence of finalized legislative text and concerns over national security and anti-money laundering provisions.
Political tensions surrounding President Donald Trump's involvement in cryptocurrency ventures have been cited as a significant factor in the bill's derailment. Democrats have raised concerns about potential corruption linked to Trump's crypto businesses, particularly following reports of foreign investments in his ventures. This has led to a push for amendments that would prevent public officials, including Trump and his family, from profiting off stablecoins and memecoins. Senators Elizabeth Warren, Cynthia Lummis, John Thune, Ruben Gallego, Kirsten Gillibrand, Josh Hawley, Rand Paul, Angela Alsobrooks, Tim Scott, Bill Hagerty, Andy Kim, Jeff Merkley, and Chuck Schumer have been key figures in the discussions surrounding the bill.
Treasury Secretary Scott Bessent criticized the Senate's decision, labeling it a missed opportunity for U.S. leadership in the global digital assets market. He emphasized the importance of a federal framework over a patchwork of state regulations to ensure the growth and competitiveness of stablecoins. Industry leaders, including Coinbase CEO Brian Armstrong, remain hopeful that renewed efforts could see the bill revisited as early as next week.
The Collapse of the GENIUS Act Is a Blow to U.S. Stablecoin Leadership
Sadly, Stablecoin Summer has been paused due to the failure of the GENIUS Act to pass a critical vote in the Senate. This stunning setback motivated by last-minute political gamesmanship demonstrates a huge https://t.co/4YDKfgVC9t
US Treasury Secretary Bessent lambasts Senate for blocking stablecoin bill, calls it ‘missed opportunity’ for American leadership https://t.co/jNOxOa6ldx
