Treasury Chief Bessent Torches Senate Over Killed GENIUS Stablecoin Bill—"Innovation Roadblock"
Washington’s latest crypto clash sees Treasury Secretary Bessent unloading on Senate lawmakers for derailing the GENIUS Act—a bill that promised regulatory clarity for stablecoins. Critics call it another case of DC playing catch-up while the private sector laps them.
Bessent’s fiery remarks frame the blockage as a ’strategic failure’ for US fintech competitiveness. Meanwhile, crypto exchanges keep minting profits by operating in the regulatory gray zone—because nothing says ’free market’ like outdated laws forcing innovation offshore.
‘Once in a generation’
Bessent called the GENIUS Act “a once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation.”
Without it, he said, “stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework.”
The defeat of the GENIUS Act has cast uncertainty over stablecoin oversight and the broader effort to pass digital asset legislation ahead of the 2026 midterm elections, when every House seat and a third of the Senate will be contested.
“The world is watching while American lawmakers twiddle their thumbs,” Bessent wrote. “Either step up and lead or watch digital asset innovation MOVE offshore.”
Sen. Mark Warner (D-VA), one of several Democrats who voted to block the bill, said it was incomplete.
“I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t yet finished,” Warner said in a statement on Thursday.
Others pointed to political tensions sparked by recent crypto-related endorsements from President Donald Trump, which some lawmakers saw as undermining the bill’s credibility.
Senator Elizabeth Warren has continuously warned that advancing the legislation without safeguards WOULD “aid and abet Trump’s corruption.”
Still, hopes for a revival remain.
A crypto policy leader told Decrypt the bill could return to the floor as early as next week, but admitted the prospects were uncertain.
Sen. Warner also pointed to that timeline, saying he hopes the Senate can “start floor consideration next week” once the revised text is finalized and colleagues have had time to review it.
Sen. Cynthia Lummis (R-WY), a longtime advocate for digital asset policy, called the bill’s failure a serious setback.
“Make no mistake, digital assets are the future and America must lead the way,” she tweeted Thursday, while thanking her pro-crypto colleagues.
While the GENIUS Act stalled, industry voices say the larger push for crypto regulation remains a top priority for lawmakers and industry leaders alike.
Coinbase CEO Brian Armstrong tweeted how “both sides care deeply about getting clear rules for crypto and getting it right,” adding after years of being sidelined, “crypto isn’t just at the table, it’s at the top of the agenda.”
Edited by Sebastian Sinclair
