Quick Summary
- Senate votes 49-48 against the GENIUS Act, stalling stablecoin regulation.
- Treasury Secretary Scott Bessent slams the decision as a “missed opportunity.”
- Bill aimed to enforce full dollar reserves, annual audits, and ban foreign issuers.
- Concerns over Trump’s crypto ties and incomplete bill text influenced the vote.
- Lawmakers and industry leaders still hope for a revival of the bill next week.
GENIUS Act Falls Short in Tight Senate Vote
In a narrow 49-48 vote, the U.S. Senate rejected the GENIUS Act, a landmark bill intended to bring clarity and stability to the stablecoin market. The decision stalls what many saw as a critical step toward establishing American leadership in the fast-growing digital asset space.
Bessent: “A Missed Opportunity” for U.S. Leadership
Treasury Secretary Scott Bessent expressed strong disappointment, stating that the Senate’s rejection was a setback for U.S. influence in digital finance.
“For stablecoins and other digital assets to thrive globally, the world needs American leadership,” Bessent posted on X.
“The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.”
He called the bill a “once-in-a-generation opportunity” to boost both U.S. influence and dollar dominance worldwide.
What the GENIUS Act Proposed
The GENIUS Act aimed to create a federal framework for stablecoins, with key provisions such as:
- Full dollar reserves backing every token
- Mandatory annual audits for stablecoin issuers
- A ban on foreign entities issuing U.S.-based stablecoins
Though the bill had earlier cleared the Senate Banking Committee, unresolved language and regulatory holes led Democrats to withhold support.
Tensions, Trump, and Unfinished Drafts
Senators cited a lack of finalized bill text and weak anti-money laundering measures as critical shortcomings.
Sen. Mark Warner voiced concern, saying he couldn’t back the legislation in its current form.
Meanwhile, Senate Majority Leader John Thune, who also voted against the bill, added:
“I just don’t get it. I don’t know what more they want.”
The debate was further inflamed by political tensions surrounding former President Donald Trump’s involvement in crypto, including:
- Hosting $1.5 million-per-plate crypto fundraisers
- Publicly supporting DeFi firm World Liberty Financial and its stablecoin
These associations raised conflict-of-interest concerns, with lawmakers like Rep. Maxine Waters boycotting related hearings.
Is There Still Hope?
Despite the failed vote, there’s cautious optimism.
Sen. Warner suggested the bill might return for another vote next week.
Industry voices are also pushing forward. Coinbase CEO Brian Armstrong tweeted:
“Both sides care deeply about getting clear rules for crypto.”
The road to stablecoin regulation may be delayed, but it’s far from over.