TLDR
- The US Senate failed to advance the GENIUS Act, causing widespread criticism.
- Treasury Secretary Scott Bessent warned the delay could push innovation overseas.
- Bessent said the GENIUS Act is needed to ensure clear stablecoin regulation.
- Senator Cynthia Lummis stressed the act is vital for US digital leadership.
- Lummis urged Congress to act before other nations gain the upper hand.
The United States Senate failed to advance the GENIUS Act this week, triggering widespread criticism from key policymakers and industry leaders. The legislative breakdown has intensified concerns about the country’s ability to establish a clear federal framework for stablecoins. This setback comes amid rising global competition in digital finance and ongoing debate over domestic leadership in cryptocurrency regulation.
Scott Bessent Criticizes Senate’s Delay on GENIUS Act
US Treasury Secretary Scott Bessent sharply criticized the Senate for not progressing with the GENIUS Act this week. He emphasized the urgent need for a unified federal framework to support stablecoin innovation and global leadership. According to Bessent, the current delay risks shifting technological advancements to foreign markets, which may reduce US influence in digital finance.
For stablecoins and other digital assets to thrive globally, the world needs American leadership.
The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.
This bill represents a once-in-a-generation opportunity to expand dollar…
— Treasury Secretary Scott Bessent (@SecScottBessent) May 8, 2025
Bessent argued that the GENIUS Act could help ensure regulatory clarity and drive responsible growth in the stablecoin sector. He warned that the absence of such legislation could lead to fragmented oversight and slow innovation across US markets. He also noted that the failure to act weakens the nation’s position as a leader in financial technology.
Previously, Bessent opposed the Federal Reserve’s consideration of a central bank digital currency, aligning instead with market-driven solutions like the GENIUS Act. He called for swift action to avoid long-term consequences for innovation and security. He reiterated that without strong Congressional backing, digital assets could flourish outside of US jurisdiction.
Senator Lummis Calls for Renewed Focus on Digital Assets
Despite bipartisan efforts, Senator Cynthia Lummis expressed disappointment with the Senate’s failure to pass the GENIUS Act. She stressed that stablecoins are essential to the future of the digital economy and national competitiveness. Lummis called the GENIUS Act a critical tool for maintaining the US edge in digital innovation.
She acknowledged recent collaborative efforts from multiple leaders, including President Trump and Senators Gillibrand and Hagerty, supporting digital finance legislation. Lummis believes the stalled progress sends the wrong message to innovators and global markets. She urged her colleagues to act before other nations seize the opportunity to lead.
Lummis remains committed to advancing a transparent and consistent framework through the GENIUS Act. She maintains that US leadership must be backed by decisive Congressional support. According to her, without action, the nation may lose momentum in shaping the future of stablecoins.
John Deaton Urges Senate to Prioritize GENIUS Act Over Politics
Pro-XRP attorney John Deaton also condemned the Senate’s failure to advance the GENIUS Act after recent bipartisan momentum. He questioned the reasons behind the abrupt gridlock that blocked the legislation despite earlier support. Deaton urged lawmakers to put national interests above partisan divisions to ensure stablecoin clarity.
He emphasized that the bill could resolve long-standing regulatory confusion around digital assets and boost confidence in US markets. Deaton called on Senators to stop delaying and recommit to passing legislation that supports innovation and market growth. He emphasized that failure to act risks pushing digital assets further outside the US framework.
