Democrats block stablecoin regulation

The GENIUS Act, a bill to regulate stablecoins, was rejected in the first vote in the U.S. Senate.

The GENIUS-Act, a proposal to regulate stablecoins, was rejected at the first Senate vote. On Thursday, 49 senators voted against and 48 for the measure, notably including several Democrats who are typically crypto-friendly.

These Democrats pulled their support just before the vote, while the bill earlier this year enjoyed broad support from both parties. The reasons cited concerns about national security, anti-money-laundering provisions, and the sudden introduction of new formulations in the bill.

Some also pointed to the political tensions sparked by President Donald Trump’s recent backing of the crypto sector. Some lawmakers say this has undermined the bill's credibility.

In particular, Trump’s own crypto ambitions, including a DeFi project (WLFI) with its own stablecoin, are viewed by Democrats as conflicts of interest. Senator Elizabeth Warren stated that the bill “would further empower Donald Trump's corruption” and undermine consumer protection.

Senator Warner stated: “We have taken important steps with the GENIUS Act, but the work is not done. I cannot in good conscience ask my colleagues to vote for this bill when the text isn’t ready.”

“Failing to pass the stablecoin bill today, with many supporters suddenly voting against it, is a serious setback for bipartisan crypto support,” writes Alex Thorn, head of research at Galaxy Digital. “The hope now is that a revised version will be filed on Monday to give it another try.”

Meanwhile, U.S. Treasury Secretary Scott Bessent has weighed in on the debate, criticizing the bill's failure.

“For stablecoins and other digital assets to thrive globally, American leadership is needed,” View post on X Bessent on X. “The Senate missed an opportunity today to take that leadership by not moving forward with the GENIUS bill.”