The Senate’s resolution to dam the GENIUS Act on Thursday drew quick condemnation from Treasury Secretary Scott Bessent, who warned the vote may jeopardize the U.S.’s place within the world digital belongings race.
“For stablecoins and different digital belongings to thrive globally, the world wants American management,” Bessent posted on X. “The Senate missed a possibility to offer that management immediately by failing to advance the GENIUS Act.”
For stablecoins and different digital belongings to thrive globally, the world wants American management.
The Senate missed a possibility to offer that management immediately by failing to advance the GENIUS Act.
This invoice represents a once-in-a-generation alternative to broaden greenback…
— Treasury Secretary Scott Bessent (@SecScottBessent) Might 8, 2025
The invoice, designed to determine a federal regulatory framework for issuing stablecoins, did not cross a procedural vote on Thursday after key Senate Democrats moved to stonewall it.
Although it had loved bipartisan help earlier this 12 months, Democrats pulled again within the remaining hours, citing considerations over nationwide safety, anti-money laundering provisions, and the sudden introduction of latest language.
‘As soon as in a era’
Bessent referred to as the GENIUS Act “a once-in-a-generation alternative to broaden greenback dominance and U.S. affect in monetary innovation.”
With out it, he stated, “stablecoins will likely be topic to a patchwork of state laws as an alternative of a streamlined federal framework.”
The defeat of the GENIUS Act has solid uncertainty over stablecoin oversight and the broader effort to cross digital asset laws forward of the 2026 midterm elections, when each Home seat and a 3rd of the Senate will likely be contested.
“The world is watching whereas American lawmakers twiddle their thumbs,” Bessent wrote. “Both step up and lead or watch digital asset innovation transfer offshore.”
Sen. Mark Warner (D-VA), one among a number of Democrats who voted to dam the invoice, stated it was incomplete.
“I merely can not in good conscience ask my colleagues to vote for this laws when the textual content isn’t but completed,” Warner stated in a press release on Thursday.
Others pointed to political tensions sparked by latest crypto-related endorsements from President Donald Trump, which some lawmakers noticed as undermining the invoice’s credibility.
Senator Elizabeth Warren has constantly warned that advancing the laws with out safeguards would “support and abet Trump’s corruption.”
Nonetheless, hopes for a revival stay.
A crypto coverage chief informed Decrypt the invoice may return to the ground as early as subsequent week, however admitted the prospects have been unsure.
Sen. Warner additionally pointed to that timeline, saying he hopes the Senate can “begin flooring consideration subsequent week” as soon as the revised textual content is finalized and colleagues have had time to overview it.
Sen. Cynthia Lummis (R-WY), a longtime advocate for digital asset coverage, referred to as the invoice’s failure a critical setback.
“Make no mistake, digital belongings are the long run and America should paved the way,” she tweeted Thursday, whereas thanking her pro-crypto colleagues.
Whereas the GENIUS Act stalled, business voices say the bigger push for crypto regulation stays a high precedence for lawmakers and business leaders alike.
Coinbase CEO Brian Armstrong tweeted how “either side care deeply about getting clear guidelines for crypto and getting it proper,” including after years of being sidelined, “crypto isn't simply on the desk, it's on the high of the agenda.”
Edited by Sebastian Sinclair
