U.S. Senate Rejects GENIUS Act in 48-49 Vote Amid Concerns Over Trump's Crypto Ties to World Liberty Financial and Binance

The U.S. Senate faced a significant setback in its efforts to pass the GENIUS Act, a bill aimed at regulating stablecoins, as it failed a key procedural vote on May 8, 2025. The vote, which required 60 votes to advance, ended with a tally of 48-49, reflecting a division primarily along party lines. Senate Democrats, including key figures like Elizabeth Warren and Chuck Schumer, blocked the bill, citing concerns over potential conflicts of interest related to President Donald Trump's involvement in the cryptocurrency industry.

The opposition from Democrats was fueled by recent announcements from Trump and his family regarding their cryptocurrency ventures, including a stablecoin launched by World Liberty Financial and a meme coin event. These developments raised ethical concerns among Democrats, who argued that the legislation could inadvertently benefit Trump's financial interests. Specifically, 58 wallets made over $10 million each from Trump's $TRUMP meme coin, totaling $1.1 billion in profits, while about 764,000 wallets lost money. An Abu Dhabi-backed firm announced a $2 billion investment in World Liberty Financial's stablecoin, which is to be used to purchase a stake in Binance. Senate Majority Leader John Thune expressed disappointment over the Democrats' refusal to move forward with the bill, suggesting that further negotiations could still lead to its passage.

The failure of the GENIUS Act to advance has broader implications for the cryptocurrency industry, which has been seeking regulatory clarity in the U.S. The setback may affect other pending crypto legislation, including a parallel stablecoin bill in the House and market structure bills in both chambers. In response to these developments, Democrats introduced the End Crypto Corruption Act and the MEME Act, aiming to prohibit federal officials and their families from investing in or endorsing digital assets. The crypto industry, which has invested heavily in political lobbying, now faces uncertainty as it continues to push for regulatory frameworks to legitimize and stabilize the sector.