Senate Fails Cloture Vote on GENIUS Act, Crypto Legislation in Jeopardy

The Senate's GENIUS Act, a pivotal piece of legislation aimed at establishing a legal framework for issuing stablecoins in the United States, suffered a significant setback on Thursday. The bill failed to pass a key procedural vote, known as cloture, which is necessary to end debate and advance the legislation towards a full vote. This failure has cast a shadow over the bill's chances of passage and may have broader implications for other crypto-related legislation pending on Capitol Hill.

Several pro-crypto Democrats, who had previously supported the GENIUS Act, voted against cloture. These included Ruben Gallego (D-AZ), Mark Warner (D-VA), Lisa Blunt Rochester (D-PA), Andy Kim (D-NJ), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD). Notably, Alsobrooks and Gillibrand had initially co-sponsored the bill. Sen. Warner, in a statement following the failed vote, expressed that while progress had been made, the legislation was not yet complete and he could not in good conscience ask his colleagues to vote for it in its current form.

The setback for the GENIUS Act may also impact other crypto-focused bills, including a parallel stablecoin bill in the House and crypto market structure bills in both chambers. Just a week ago, the GENIUS Act had substantial support from both parties and seemed poised to secure the necessary 60 votes. However, several factors conspired to derail its chances. Late last week, a new version of the bill circulated without Democrats’ forewarning or full knowledge of its contents. Additionally, multiple crypto- and stablecoin-related announcements by President Donald Trump and his family stirred anger among Democrats over perceived conflicts of interest.

These developments led nine Senate Democrats to withdraw their support for the GENIUS Act, citing concerns over anti-money laundering and national security requirements in the bill’s latest draft. In response, Senate Republicans scheduled a cloture vote for Thursday, with key crypto-focused counterparts from both parties engaging in nearly nonstop negotiations to reach an agreement. Despite public warnings from Republican Senate leadership and the White House to wavering Democrats, the tactics were not effective. The failed vote has left crypto policy leaders worried that the industry’s legislative agenda could be sunk.

One crypto lobbyist noted that the recent political momentum for the crypto industry was based on the White House viewing legislation for the sector as an easy win. For months, Trump officials had spoken optimistically of an August Rose Garden signing ceremony for key crypto legislation. The failed vote could change that calculus and prompt the president to move on to other priorities. Bo Hines, executive director of the President’s Working Group on Digital Assets, criticized Democrats for playing partisan politics and not prioritizing the interests of the American people.

Despite the setback, there is hope that the bill might be brought up for another vote as soon as Monday. However, the likelihood of a positive outcome remains uncertain. Over the last several years, the crypto industry has invested significant resources in currying political favor in Washington. The recent months had seen crypto emerging as one of Congress’ top legislative priorities in 2025. However, this short-lived victory is now once again in jeopardy due to the failed vote on the GENIUS Act.