The U.S. Senate failed to advance the GENIUS Act on Thursday in a nail-biting vote, marking a setback to establishing the first-ever set of payment stablecoin regulations.
Senate Delivers Blow To Stablecoin Bill
Originally introduced by Senator Bill Hagerty (R-TN) in February, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was co-sponsored by Chairman Tim Scott (R-SC) and Subcommittee on Digital Assets Chair Cynthia Lummis (R-WY).
After receiving bipartisan support, Hagerty’s legislation fell 48-49 on the Senate floor on Thursday, prompting a wave of disappointment from key members of the cryptocurrency community.
“This bill represents a once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation,” U.S. Treasury Secretary Scott Bessent said in a May 8 X post.
“Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness,” he added.
“I’m deeply disappointed that we were unable to pass this important, bipartisan-crafted stablecoin legislation today,” Lummis said in a statement. “Make no mistake, digital assets are the future and America must lead the way.”
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 policy and U.S. President Donald Trump’s ties to cryptocurrencies in both chambers of Congress.
Ranking member of the House Financial Services Committee Maxine Waters stormed out of a high-profile crypto hearing alongside several other House Democrats on Tuesday, citing concerns over Trump’s crypto affiliations and federal government leadership.
Last week, Trump confirmed he would be hosting an exclusive gala dinner for the top 220 investors of his namesake meme coin, $TRUMP, ushering in increased scrutiny over potential conflicts of interest.
News also broke that the Trump-affiliated World Liberty Financial’s newly launched stablecoin USD1 would be used to finalize a deal between Abu Dhabi-based investment firm MGX and Binance, further angering his Democratic opponents.
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