GENIUS Act Stalls in Senate Vote, Delaying Stablecoin Framework

The U.S. Senate narrowly rejected the GENIUS Act in a 48-49 vote, dealing a blow to efforts establishing federal oversight for payment stablecoins. Senator Bill Hagerty’s legislation, co-sponsored by key Republican figures including Cynthia Lummis, sought to position the dollar at the forefront of financial innovation.

Market participants anticipated the bill would provide regulatory clarity for stablecoins—digital assets pegged to traditional currencies. The failure to advance underscores ongoing political divisions over cryptocurrency regulation, leaving the sector in limbo despite bipartisan support for some provisions.

Treasury Secretary’s unfinished statement suggests the administration viewed this as a strategic opportunity to reinforce dollar dominance through technological channels. The setback may temporarily slow institutional adoption until clearer guidelines emerge.