U.S. Senate Rejects Cloture on GENIUS Act in 48-49 Vote, Citing Trump's Crypto Ties

The U.S. Senate's attempt to advance the GENIUS Act, a bipartisan bill aimed at regulating stablecoins, was thwarted by a 48-49 vote against cloture. The bill, which would establish a federal framework for payment stablecoins, faced opposition from 49 Democrat senators who cited concerns over President Donald Trump's involvement in cryptocurrency ventures, including the TRUMP and MELANIA meme coins and a $2 billion investment by an Abu Dhabi-backed firm in Trump family-linked crypto firm World Liberty Financial. Democrats, including Senators Elizabeth Warren and Chuck Schumer, have been vocal about their opposition, linking their stance to Trump's alleged crypto corruption. This opposition was highlighted by a walkout of Democrats from a House crypto hearing, where they protested Trump's ties to the cryptocurrency industry. Negotiations between Senate Republicans and Democrats have been ongoing, with Democrats seeking stronger provisions on anti-money laundering, foreign issuers, and national security. Despite these efforts, the latest draft of the GENIUS Act did not meet Democratic standards, leading to a withdrawal of support from nine Democratic senators, including Sens. Ruben Gallego, Mark Warner, Angela Alsobrooks, and Kirsten Gillibrand, who had previously backed the bill. The failure to advance the GENIUS Act has sparked criticism from Republican senators like Senate Majority Leader John Thune, Sen. Tim Scott, Sen. Cynthia Lummis, and Sen. Bill Hagerty, as well as from Treasury Secretary Scott Bessent, who argue that the bill's rejection could hinder U.S. leadership in digital assets and push innovation offshore. Bessent emphasized the importance of the bill for expanding dollar dominance and U.S. influence in financial innovation. Senators Josh Hawley, Rand Paul, and John Kennedy have also indicated opposition to the bill for various reasons. Democrats have introduced the End Crypto Corruption Act, proposed by Sens. Jeff Merkley and supported by Sens. Bernie Sanders and Richard Blumenthal, to ban elected officials and their families from financially benefiting from crypto assets.