A US Senate vote on May 8 brought an end to the GENIUS Act, a bill meant to create clear rules for stablecoins tied to the US dollar.
Formally called the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, it failed to gain enough support after several Democratic Senators backed away.
The proposal aimed to set clear rules for companies issuing stablecoins, especially those used for payments. Senators from both parties had worked on the bill, including Bill Hagerty, Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks.
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To gain more support, the bill had been updated with tougher anti-money laundering measures. These changes were meant to ease worries about how stablecoins could be misused. Despite those adjustments, the measure did not gather the 60 votes needed to end debate and head to a final decision.
In a May 9 post on X, Senator Lummis said she was “deeply disappointed” and stressed that digital assets are here to stay, with the US needing to take the lead.
Treasury Secretary Scott Bessent also noted that without US leadership, other countries may set the tone for stablecoin development.
Democratic Senators’ shift on the GENIUS Act came as concerns grew about President Donald Trump’s growing interest in crypto businesses.
Recently, Elizabeth Warren and Adam Schiff called for an ethics investigation after President Trump invited major holders of his meme coin, OFFICIAL TRUMP (TRUMP), to private dinners. What did they say? Read the full story.
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