US Senate Rejects GENIUS Act, Dealing Blow to Crypto Regulatory Clarity

The U.S. Senate blocked advancement of the GENIUS Act in a 48-49 procedural vote, falling short of the 60 votes required to begin debate on stablecoin regulation. This marks a significant setback for the cryptocurrency industry’s quest for clear regulatory frameworks.

Despite bipartisan negotiations and prior approval by the Senate Banking Committee, last-minute opposition from Democrats derailed progress. Concerns centered on inadequate safeguards against illicit finance and foreign stablecoin issuers. Some lawmakers cited former President Trump’s cryptocurrency affiliations as a complicating factor in the deliberations.

The failure to advance this legislation represents a missed opportunity for U.S. leadership in shaping global digital asset standards. Market participants had viewed the bill as crucial for providing regulatory certainty around stablecoins - a key component of crypto market infrastructure.