The U.S. Senate did not advance the GENIUS Act on Thursday in a nail-biting vote, marking a setback to establishing the first-ever set of cost stablecoin rules.
Senate Delivers Blow To Stablecoin Invoice
Initially launched by Senator Invoice Hagerty (R-TN) in February, the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act was co-sponsored by Chairman Tim Scott (R-SC) and Subcommittee on Digital Belongings Chair Cynthia Lummis (R-WY).
After receiving bipartisan assist, Hagerty’s laws fell 48-49 on the Senate flooring on Thursday, prompting a wave of disappointment from key members of the cryptocurrency group.
“This invoice represents a once-in-a-generation alternative to broaden greenback dominance and U.S. affect in monetary innovation,” U.S. Treasury Secretary Scott Bessent mentioned in a Might 8 X submit.
“With out it, stablecoins will probably be topic to a patchwork of state rules as a substitute of a streamlined federal framework that’s extra conducive to development and competitiveness,” he added.
My assertion after the Senate did not advance the GENIUS Act. pic.twitter.com/lARFxCPEg9
— Senator Cynthia Lummis (@SenLummis) Might 8, 2025
“I’m deeply disenchanted that we had been unable to move this essential, bipartisan-crafted stablecoin laws in the present day,” Lummis mentioned in a press release. “Make no mistake, digital belongings are the long run and America should cleared the path.”
All Eyes On Trump’s Crypto Ventures
The U.S. Senate’s rejection of the GENIUS Act comes amid a dramatic partisan divide over crypto coverage and U.S. President Donald Trump’s ties to cryptocurrencies in each chambers of Congress.
Rating member of the Home Monetary Providers Committee Maxine Waters stormed out of a high-profile crypto listening to alongside a number of different Home Democrats on Tuesday, citing considerations over Trump’s crypto affiliations and federal authorities management.
Final week, Trump confirmed he could be internet hosting an unique gala dinner for the highest 220 buyers of his namesake meme coin, $TRUMP, ushering in elevated scrutiny over potential conflicts of curiosity.
Information additionally broke that the Trump-affiliated World Liberty Monetary’s newly launched stablecoin USD1 could be used to finalize a deal between Abu Dhabi-based funding agency MGX and Binance, additional angering his Democratic opponents.
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