Democratic Opposition Threatens GENIUS Act, Jeopardizing 2025 Crypto Agenda

The Senate GENIUS Act, a bipartisan bill aimed at establishing federal stablecoin regulations, faces mounting resistance from Democratic lawmakers. Nine Senate Democrats now oppose cloture unless recently demanded changes are implemented, stalling progress on what was seen as a cornerstone of 2025’s crypto regulatory framework.

Galaxy Digital’s research head Alex Thorn warns the bill’s failure could derail all pending cryptocurrency legislation next year. The Guiding and Establishing National Innovation for US Stablecoins Act had advanced through committee in March with rare cross-aisle support, offering what many viewed as a template for broader digital asset oversight.

Market participants now watch Washington closely as the political standoff threatens to delay clarity for stablecoins - the gateway between traditional finance and crypto markets. The impasse comes during a period of renewed institutional interest in digital assets, with several spot ETF approvals and growing adoption of blockchain-based financial infrastructure.