- The Senate failed to advance the GENIUS Act after losing support from key Democrats over security concerns.
- The vote collapse delays stablecoin regulation and raises doubts about future crypto legislation in Congress.
- Lawmakers now expect the GENIUS Act to return to committee before it can move forward again.
The US Senate has blocked progress on the GENIUS Act, halting a major step toward regulating stablecoins. A procedural vote on Thursday failed to move the bill forward. The bill now faces a setback that may stall future crypto legislation.
The GENIUS Act aimed to establish a clear framework for issuing stablecoins in the US. Despite bipartisan work, the Senate vote revealed deep political divisions. Several Democrats who had backed the bill voted against it during the cloture vote. This vote was needed to end debate and proceed to a full vote.
Democrats Withdraw Support Amid Concerns
The change was based on a new concern about the anti money laundering provisions and national security requirements. Senators also responded to recent declarations by Donald Trump over digital assets. These announcements created conflict of interest issues among lawmakers.
Some Democrats requested amendments to tighten controls before any vote. But those changes did not reach consensus. Without agreement, Democratic support fell apart. Ten Democratic Senators who once backed the bill now opposed it. Some had even co-sponsored the original draft.
The failed vote also exposed growing mistrust between parties over crypto policy. Republican leaders accused Democrats of politicizing the issue. They claimed the vote was driven by opposition to Trump’s legislative goals. Senate Republicans warned that political infighting could damage US leadership in digital finance.
Bill Faces Uncertain Future
Senator Cynthia Lummis, a pro-crypto lawmaker, expressed disappointment with the result. She noted that bipartisan talks had aimed to craft fair legislation. Despite early optimism, the bill lost momentum following weekend developments. A revised draft of the bill surfaced last week without full Democratic input.
This version prompted nine Democrats to withdraw their support on Saturday. They cited missing safeguards and poor communication. Senators involved in crafting the bill met several times to try and resolve differences. However, no deal emerged in time for the vote.
Now, the GENIUS Act is unlikely to reach the House floor before the end of the month. Lawmakers say the bill may return to committee level for revisions. In the meantime, the broader crypto agenda faces uncertainty.
Crypto Legislation Faces Broader Setbacks
Parallel bills in the House may also suffer delays. Key crypto market structure proposals could lose bipartisan backing. The failed vote may also impact cooperation between the White House and Senate leadership on digital finance.
Despite last-minute lobbying, including pressure from political action committees, the bill failed. Crypto advocates now worry the entire legislative roadmap may face collapse.
