Crypto regulation in the United States hit a major roadblock as the Senate voted against moving forward with the GENIUS Act—a pivotal bill aimed at regulating stablecoins and setting clear rules for blockchain assets. On Thursday, lawmakers were just shy of the 60 votes needed to start discussion, with a close 48-49 procedural vote signaling strong division across party lines.
Despite months of bipartisan talks and initial progress in committee, the crypto landscape faced a setback as Senate Democrats raised fresh concerns. Their reluctance focused on gaps in anti-money laundering measures, as well as the risks from foreign stablecoin issuers that could potentially disrupt the digital currency markets. There was also renewed attention on political crosswinds, with a nod to recent former presidential campaign fundraising around crypto tokens.
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]
The crypto community watched closely as notable senators, including Josh Hawley and Rand Paul, broke with their parties to vote no. In an unexpected turn, Senate Majority Leader John Thune made a last-minute switch, a procedural step that keeps the bill alive for potential reconsideration—a parliamentary tactic that could come into play if negotiations progress.
Even some previous supporters, like Senator Ruben Gallego who benefited from the backing of crypto-friendly political action committees, have called for a break to revisit and strengthen the proposed rules. This push for more robust safeguards reflects ongoing debates about how to foster innovation in DeFi and crypto tokens, while protecting consumers and the broader economy.
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The bill’s defeat, though significant, doesn’t spell the end for stablecoin regulation in the US. Key lawmakers indicate talks may resume as early as next week, with amendments likely to address concerns around security and transparency. Experts caution that while delays hinder short-term market certainty, they also provide a window for more comprehensive, expert-driven regulation—potentially bolstering trust in American blockchain projects in the long run.
Senators on both sides acknowledged the broader implications: Republican voices warned that continued delays could push innovation and crypto development overseas, while others emphasized the need for American-led standards in global digital finance. The bill’s sponsor, Bill Hagerty, called the vote a blow to the domestic crypto industry—a sentiment echoed by industry analysts and blockchain advocates.
As debate around the GENIUS Act continues, the outcome will set the tone for how the US regulates stablecoins and digital assets, a key factor in the future growth of the crypto sector.
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For more background on crypto regulations and the policy challenges facing stablecoins, explore our deep-dive on [how stablecoin legislation impacts DeFi innovation].