Sen. Tim Scott Vows Political Payback After Democrats Block Crypto’s GENIUS Act

Washington’s crypto clash escalates as Senator Tim Scott threatens ’painful repercussions’ for Democrats who stalled the groundbreaking GENIUS Act. The legislation—touted as a rare bipartisan win for blockchain innovation—hit a wall in committee after last-minute opposition.

Behind the drama: The bill promised clearer rules for tokenized assets and DeFi protocols. Critics called it a handout to ’Venture Bros who missed the NFT bubble.’

Scott’s warning shot signals a brewing political storm—just as institutional money starts flowing into ETH ETFs. Because nothing unites politicians like vengeance and a hot market.

Democrats stall bill as Trump’s crypto ties dominate talks

The bill failed in a Senate where crypto had, until now, enjoyed its most favorable climate under President Donald Trump’s second term. The setback was the first major blow for the industry in the TRUMP era. Republican leaders needed Democratic votes to push the bill through, and they didn’t get them.

Senator Chuck Schumer, the Democratic leader, had warned his caucus a week before the vote not to commit to supporting the bill. Behind closed doors, he asked them to use their leverage to demand more changes. Lawmakers like Senator Elizabeth Warren and Chris Murphy raised concerns about passing any crypto legislation while the Trump family remained so deeply involved in the space.

Trump’s sons launched a stablecoin venture last year, and Trump himself issued a memecoin just two days before taking office again. Murphy said, “The Trump crypto coin scam is the biggest corruption in the history of the WHITE House.” He and others demanded language in the bill that would bar any president from creating or profiting from crypto.

Not everyone agreed. Senator Ruben Gallego, who voted for an earlier version of the bill and led last-minute negotiations, said Trump’s coin had nothing to do with the actual bill.

“If we don’t pass any stablecoin legislation, he’s still going to do everything he’s going to do right now. The most important thing we can do is get a strong, strong bill.”

After the bill died, Scott stood on the Senate floor and said, “It was a vote to stop President Trump from having a victory in the digital asset space. It was a vote against common sense — that simple.” He accused Democrats of letting “Trump Derangement Syndrome” hijack what could’ve been a win for both parties and the crypto space.

Democrats said they needed more time to finalize the deal. Gallego asked to delay the vote on the Senate floor, but Republicans rejected the request. Now, Senate Majority Leader John Thune has filed a motion to reconsider, which could bring the bill back.

Senator Warren told reporters, “I always worry about the influence of money in Washington, but the crypto industry seems to think that they have a lot of power right now because of the contributions that they’ve made.”

After the vote, Scott’s team made it clear they don’t want crypto donors wasting money on Democrats anymore. Jennifer DeCasper, Scott’s longtime aide and the current Executive Director of the National Republican Senatorial Committee, said, “Anyone backing Senate Democrats in hopes of crypto progress is ignoring reality.”

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage