- Senate blocks GENIUS Act despite bipartisan support and Bessent’s call for stablecoin clarity
- Democrats cite AML, Trump links, and national security issues in opposition to final bill text
- Bessent calls it a “missed chance” for the U.S. to lead in digital dollar and crypto infrastructure
The U.S. Senate’s failure to advance the GENIUS Act drew sharp criticism from Treasury Secretary Scott Bessent. He warned the decision could damage the country’s ability to lead in digital finance. This bill, officially the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, failed a procedural vote on May 8. Several Democratic senators pulled their support, citing language and timing issues.
Bessent, also active on X, called the bill a “once-in-a-generation opportunity.” He said it aimed to strengthen dollar dominance and promote U.S. leadership in financial innovation. Bessent argued the Senate’s vote hurts progress on a stable federal framework for payment-focused stablecoins.
Democratic Concerns Stall Stablecoin Bill
The GENIUS Act began as a bipartisan solution but faltered late. Senate Democrats pointed to unfinished text and last-minute changes for their opposition. Senator Mark Warner of Virginia stated he couldn’t back an incomplete bill, raising national security and anti-money laundering (AML) concerns.
Revised bill language included tighter compliance and better safeguards for stablecoin issuers. Still, it wasn’t enough for Democratic backing. Some lawmakers reportedly worried President Donald Trump’s recent crypto endorsements added political baggage, compromising the bill’s neutrality.
Related: Rep. Steil Wants Crypto Bills Passed “In Tandem”: Here’s the Strategy
Supporters Disappointed by Legislative Block
Senator Bill Hagerty introduced the GENIUS Act. Senators Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks co-sponsored it.
Despite efforts to find agreement, the bill failed to get enough votes to end debate (cloture) and proceed to a full vote. Senator Lummis also shared her disappointment via X.
Senate Majority Leader John Thune expressed frustration. He stated Democratic input was included throughout the process. Senator Lummis echoed this, calling the bill an important bipartisan step for stablecoin payment clarity.
Push for Crypto Regulation Expected to Go On
Despite this setback, industry figures and lawmakers indicate efforts to regulate digital assets will continue.
Related: Senator Hagerty’s GENIUS Act Aims to Pass Stablecoin Bill in 100 Days
Coinbase CEO Brian Armstrong noted crypto legislation remains a priority. He anticipates further initiatives soon.
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