The US Senate rejected the stablecoin bill: what is behind the failure of the GENIUS Act
Date: 2025-05-09 Author: Oliver Abernathy Categories: IN WORLD
On May 8, the US Senate did not support the introduction of the GENIUS Act bill for discussion, which concerns the regulation of stablecoins. The initiative did not pass a procedural vote after a number of Democrats refused to support it, despite the fact that some of them were previously listed among the co-authors of the document. Among those who spoke against it were Ruben Gallego (Arizona), Mark Warner (Virginia), Lisa Blunt Rochester (Pennsylvania), Andy Kim (New Jersey), Kirsten Gillibrand (New York), and Angela Alsobrooks (Maryland).
The refusal of support, especially from Gillibrand and Alsobrooks, was a serious blow to the prospects of the bill. Now its chances of being adopted have significantly decreased. According to analysts, this could weaken the overall political interest in cryptocurrency regulation in the United States and disrupt the fragile consensus between the parties.
According to Decrypt, the reason for the refusal was the senators' dissatisfaction with the changes in the draft law concerning the fight against money laundering and national security. The new version of the document appeared just a week before the vote, and many did not have time to study it in detail. As a result, nine Democrats issued an official statement in which they expressed concern and refused to support the initiative.
Republicans tried to save the situation by holding a series of urgent meetings on the eve of the vote to find a compromise. However, this did not produce any results. Bo Hines, executive director of the Digital Asset Markets Working Group, said that the Democrats "chose political games over the interests of citizens" and accused them of insufficient support for technological innovation.
One of the senators said that the GENIUS Act could be put to a vote again on May 12, but refused to assess the likelihood of its success.
The situation around President Donald Trump caused additional tension. The Senate has launched a formal review of possible conflicts of interest between his entourage and companies associated with digital assets. Richard Blumenthal has sent inquiries to World Liberty Financial and Fight Fight Fight, seeking disclosure of information about Trump's involvement in their projects.
World Liberty Financial announced the launch of the USD1 stablecoin in March, backed by government securities and reserves. In April, testing of the airdrop among token holders began. In May, a vote was initiated on the official distribution of USD1 on the Ethereum network.
Meanwhile, the Senate called the recent gala dinner for large investors in the TRUMP token "grounds for impeachment", and later it became known about the president's plans to hold a similar event for cryptocurrency donors.
