- Senate blocked the GENIUS Act in a narrow 49-48 vote, halting stablecoin regulation progress.
- Treasury Secretary Bessent called it a “missed opportunity” for U.S. digital asset leadership.
U.S. Treasury Secretary Scott Bessent criticized the Senate on Thursday for rejecting the GENIUS Act, a stablecoin regulation bill. The vote, split 49-48, halted progress amid mounting concerns over President Donald Trump’s ties to crypto. Bessent called the decision a “missed opportunity” for American leadership in the digital asset space.
The GENIUS Act aimed to create a unified federal framework for stablecoins. It required full dollar reserves, annual audits, and the ban on foreign issuers. Although the Senate Banking Committee advanced the bill in March, Democrats pulled back due to unresolved language and regulatory concerns.
“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 described the bill as a “once-in-a-generation opportunity” to boost U.S. influence and dollar dominance.
Tensions and Draft Issues Stall GENIUS Act
Democrats cited unfinished bill text and weak anti-money laundering safeguards as reasons for their opposition. Sen. Mark Warner said he couldn’t support the bill without finalized language. Senate Majority Leader John Thune, who also voted no, said he did so to allow future revisions. “I just don’t get it. I don’t know what more they want,” Thune remarked after the vote.
Political tensions over Trump’s crypto ties further complicate Trump’s support. Trump recently hosted $1.5 million-per-plate crypto fundraisers. He also endorsed DeFi firm World Liberty Financial, which runs its stablecoin. Lawmakers raised concerns about a conflict of interest before the vote. Some, like Rep. Maxine Waters, even boycotted related hearings.
Despite the setback, hopes remain for a revival of the GENIUS Act. Sen. Warner said the Senate might revisit the bill next week. Industry leaders also remain optimistic. Coinbase CEO Brian Armstrong tweeted that “both sides care deeply about getting clear rules for crypto.”
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