TLDR
- Senate Nixes Stablecoin Bill in Tight Vote
- Dems Cite AML Risks, Stall Crypto Bill
- Trump Crypto Ties Spark Ethics Uproar
- GOP Blames Politics for Bill’s Collapse
- Stablecoin Rules on Hold—Future Unclear
The United States Senate has failed to advance the GENIUS Act, legislation that aimed to introduce a regulatory framework for payment stablecoins, following a procedural vote that fell short of the 60 votes required. The vote concluded at 48-49, with Senate Majority Leader John Thune switching his vote to “no” at the last moment, a procedural maneuver allowing the bill to be reintroduced later.
By a vote of 48-49, the #Senate did not invoke cloture on the motion to proceed to S. 1582, GENIUS Act.
Senators Hawley, Paul, and Thune voted No and Leader Thune entered a motion to reconsider.
Senators not voting: Moran, Smith, and Wicker.
— Senate Press Gallery (@SenatePress) May 8, 2025
Despite prior bipartisan support in the Senate Banking Committee, the bill encountered resistance from several Democratic senators over the weekend. Lawmakers cited unfinished legislative text, a perceived rush to a floor vote, and concerns surrounding anti-money laundering (AML) provisions and national security as key reasons for their opposition.
Democratic Concerns and Request for Delay
Senator Ruben Gallego, the ranking Democrat on the Senate Banking Subcommittee on Digital Assets, led calls to delay the vote to allow more time to review and educate on the bill’s contents. Before the vote, Gallego emphasized that the work done so far was significant but that the legislation needed more refinement. He requested unanimous consent to postpone the vote until the following Monday, which was not granted.
Other Democratic senators, including Mark Warner and Raphael Warnock, also expressed unease about moving forward without finalized bill language. Warner noted that despite agreeing on the importance of regulating stablecoins, the current draft lacked sufficient clarity and security measures. Democrats stressed that additional time was needed to address gaps, particularly regarding foreign issuer oversight and AML safeguards.
Republican Reaction and Allegations of Obstruction
Senate Republicans expressed frustration following the vote, arguing that the GENIUS Act had undergone multiple revisions in response to bipartisan feedback. Senator Cynthia Lummis and Majority Leader Thune highlighted that the bill had seen six versions and incorporated several Democratic amendments.
Republicans asserted that voting to proceed to debate would have allowed for further changes on the Senate floor. Thune suggested that political motivations may have influenced the vote, pointing to the potential for denying Republicans and President Donald Trump a bipartisan legislative victory.
Trump’s Crypto Ties Raise Ethical Questions
Several Democrats pointed to President Trump’s increasing involvement in cryptocurrency as a source of concern. Trump and his family have recently launched their memecoins and promoted a stablecoin through the Trump-affiliated World Liberty Financial. A high-priced crypto fundraising dinner hosted by Trump days before the vote added to the controversy.
These developments led to accusations of potential conflicts of interest, with some lawmakers calling attention to ethics implications. Critics argue that the bill may not adequately address the risks associated with government officials profiting from digital assets
Future of Stablecoin Legislation Remains Unclear
The GENIUS Act requires stablecoins to maintain 100% reserves backed by U.S. dollars or equivalent liquid assets and mandates annual audits for issuers with over $50 billion in circulation. It also includes restrictions on foreign stablecoin issuers, though it permits their circulation in secondary U.S. markets.
While the House Financial Services Committee has advanced a similar proposal, key differences remain between the two chambers, especially concerning state versus federal oversight and treatment of foreign issuers. The failure to advance the bill marks a significant pause in efforts to regulate stablecoins, with lawmakers expected to revisit the issue in the coming weeks.
