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Lawmakers in the Senate have failed to advance the GENIUS Act, a bipartisan bill intended to regulate stablecoins.
Some shit you should know before you read: If you’re unaware, a stablecoin is a type of cryptocurrency designed to have a stable value by being tied to something like the US dollar or gold. This means if you have one stablecoin, it’s usually worth about one dollar—unlike other cryptocurrencies like Bitcoin that can change in value wildly. The idea is to make digital money that’s easier and safer to use for everyday transactions or savings. The GENIUS Act—short for Guaranteeing Essential Nationwide Infrastructure for US Stablecoins—was introduced by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY). It aimed to create clear rules and protections for companies that issue stablecoins, including requiring them to keep enough reserves (like cash or bonds) to back the coins they put into the market, and setting enforcement standards so consumers wouldn’t get scammed.
What’s going on now: Despite initially having some bipartisan support, the GENIUS Act failed to move forward in the Senate after a procedural vote on Thursday fell short, with a final tally of 48–49, well below the 60 votes needed to proceed. In a tactical maneuver, Senate Minority Leader John Thune (R-SD) switched his vote to “no” so that the bill could be potentially revived later. The defeat came as a surprise, especially since the bill had recently enjoyed strong momentum and backing from both parties.
The sudden collapse of support came largely from Democrats who had previously endorsed the bill, including Senators Kirsten Gillibrand (D-NY) and Angela Alsobrooks (D-MD), who were even listed as co-sponsors. Their opposition was fueled by last-minute changes to the bill’s text that were circulated without Democratic input. These lawmakers argued that the updated draft lacked critical provisions on anti-money laundering (AML), national security, and oversight of foreign stablecoin issuers, making the legislation too weak in areas they considered essential.
Adding to the tension were recent public announcements from President Donald Trump’s family promoting various crypto and stablecoin ventures. These moves raised serious conflict-of-interest concerns among Democrats, who questioned whether the GENIUS Act, as written, would indirectly benefit the Trump family financially. Some lawmakers pushed for the inclusion of specific guardrails to prevent elected officials and their families—especially Trump—from profiting from crypto legislation. As those demands went unmet, and trust eroded, several crypto-friendly Democrats ultimately voted to block the bill from advancing.
Sen. Ruben Gallego (D-AZ), a key Democrat on the Senate Banking Digital Asset Subcommittee, said on the Senate floor, “The reason you’re hearing some hesitancy, [is] the legislation of this scope and importance really just cannot be rushed.” He added, “We want to bring this economy and this innovation to the United States, and I’m asking for that time.” On the Republican side, Sen. John Thune (R-SD) voiced frustration, saying, “At some point, they’re going to have to take yes for an answer,” signaling his belief that Democrats were moving the goalposts after months of negotiation.
