The US Senate blocked the stablecoin regulation bill known as the GENIUS Act on May 8, 2025, after Senate Democrats withdrew their support. The bill failed to pass cloture with a vote of 48-49, falling short of the 60 votes needed to advance it for consideration.
Democrats demanded stronger provisions to prevent Trump and senior officials from profiting from crypto activities while in office. They feared the bill could inadvertently benefit Trump financially.
Democrats insisted on additional amendments to address anti-money laundering, national security, financial system integrity, and issuer accountability before supporting the bill.
Though the bill was initially bipartisan and had some Democratic backing, last-minute objections arose after Republican leadership sought to expedite the vote without fully addressing Democrats' concerns.
Senators Rand Paul and Josh Hawley also opposed the bill, with Hawley pushing for restrictions on large tech companies issuing stablecoins.
The GENIUS Act aimed to create a federal regulatory framework for stablecoins, a fast-growing segment of cryptocurrency pegged to stable assets like the US dollar, to provide consumer protection and extend dollar dominance internationally.
Senate Majority Leader John Thune criticized Democrats for blocking the bill despite accommodations, and the failure represents a setback for crypto regulation and one of Trump's legislative priorities. However, some lawmakers expressed hope that the issue could be revived with further negotiations.
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