GENIUS Act Blocked in Senate Amid Democratic Concerns Over AML and Oversight
Democrats united to stall the GENIUS Act on May 8, with 49 senators voting against advancing the legislation. The bill, which had previously enjoyed bipartisan support, faced opposition over perceived shortcomings in anti-money laundering (AML) provisions and oversight mechanisms.
Key Democrats who had initially backed the bill—including Ruben Gallego, Mark Warner, and Kirsten Gillibrand—reversed their positions. In a joint statement, they cited the lack of critical safeguards, particularly regarding foreign stablecoin issuers and stronger AML language.
The abrupt shift underscores growing tensions in crypto regulation. Stablecoins, often pegged to traditional assets, remain a focal point for policymakers balancing innovation with financial integrity.
