In brief
- Treasury Secretary Scott Bessent called the Senate’s failure to advance the GENIUS Act a missed chance to secure U.S. leadership in stablecoin regulation.
- The bill collapsed after last-minute Democratic defections, driven by concerns over rushed revisions and regulatory gaps.
- Industry leaders, including Coinbase’s Brian Armstrong, say crypto remains a legislative priority, with renewed efforts expected as early as next week.
The Senate’s decision to block the GENIUS Act on Thursday drew immediate condemnation from Treasury Secretary Scott Bessent, who warned the vote could jeopardize the U.S.’s position in the global digital assets race.
“For stablecoins and other digital assets to thrive globally, the world needs American leadership,” Bessent posted on X. “The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.”
For stablecoins and other digital assets to thrive globally, the world needs American leadership.
The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.
This bill represents a once-in-a-generation opportunity to expand dollar…
— Treasury Secretary Scott Bessent (@SecScottBessent) May 8, 2025
The bill, designed to establish a federal regulatory framework for issuing stablecoins, failed to pass a procedural vote on Thursday after key Senate Democrats moved to stonewall it.
Though it had enjoyed bipartisan support earlier this year, Democrats pulled back in the final hours, citing concerns over national security, anti-money laundering provisions, and the sudden introduction of new language.
‘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
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