US Senate Rejects GENIUS Act, Dealing Blow to Stablecoin Regulation

The US Senate failed to advance the GENIUS Act on May 8, a bipartisan bill aimed at establishing clear regulatory frameworks for stablecoins. The legislation, seen as pivotal for US leadership in digital asset oversight, fell short of the 60 votes needed to proceed, with only 49 senators supporting its advancement.

Two Republican senators—Josh Hawley and Rand Paul—joined Democrats in opposing the bill. Democratic support waned following reports linking former President Donald Trump to a cryptocurrency initiative. World Liberty Financial, a firm associated with Trump’s family, recently launched its own stablecoin.

The rejection leaves the US without a cohesive regulatory approach for stablecoins, creating uncertainty for market participants. This legislative setback contrasts with growing global efforts to establish clear rules for digital assets.