Senate Rejects GENIUS Act, Hitting Crypto Industry
The U.S. Senate blocked the GENIUS Act on Thursday, a notable blow to the crypto industry’s quest for regulatory clarity. The bill aimed to regulate stablecoins, but it didn’t secure the necesary 60 votes. It lost by a narrow margin of 48-49.
Months of bipartisan talks couldn’t overcome last-minute opposition. Democrats raised red flags over inadequate safeguards against illegal financial activities and foreign stablecoin issuers. Some also linked it to President Trump’s crypto ties, including his memecoin and fundraising events. This setback delays much-needed regulatory guidance for stablecoins.
Supporters argued the bill was crucial for U.S. leadership in digital assets. Treasury Secretary Scott Bessent lamented the missed chance for America to lead global crypto standards. The bill had earlier passed the Senate Banking Committee. however, late objections from Democrats halted its progress. thay feared the bill lacked robust protections.
Senators Josh Hawley and Rand Paul defied their party by voting against it. Senate Majority Leader John Thune switched his vote, using a procedural move to keep the door open for future discussions. The bill aimed to boost dollar-backed digital currencies. Without clear rules, the U.S. risks falling behind in the crypto race.
Sen. Ruben Gallego,who received crypto PAC funds,now wants revisions. he believes the bill needs tweaks to address their concerns. the legislation aimed to foster innovation while ensuring safety. But critics saw it as too lenient on financial crime and foreign issuers.
Sen. Mark Warner remains hopeful. He thinks the bill can still pass with adjustments. Republicans, like Sen. Cynthia Lummis, warned that delays could stifle innovation.Bill sponsor Sen. Bill Hagerty called it a “blow to the industry.” The vote reflects the ongoing tension between fostering growth and protecting consumers. The crypto community faces uncertainty as the debate continues.
Key points include:
- Regulating stablecoins to prevent misuse.
- Encouraging U.S. dominance in digital assets.
Sen. Bill Hagerty warned of stifling U.S. crypto advancements. The crypto sector needs clear laws to flourish. The GENIUS Act aimed to balance innovation with consumer protection.The crypto market needs a balanced approach. The industry seeks a framework that promotes growth without compromising safety.
Sen. Mark Warner sees room for improvement. He believes the bill can still pass with changes. The crypto world awaits revised proposals. The GENIUS Act aimed to set global standards. It aimed to expand the dollar’s digital reach.The vote shows the complex path to crypto regulation. The industry needs a supportive yet cautious approach.
Sen. Ruben gallego, a previous supporter, now calls for a pause. He wants stronger safeguards. The bill’s future remains uncertain. The debate may resume next week. The crypto sector needs a supportive yet cautious stance. The GENIUS Act was a rare chance to shape the digital asset landscape.
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