Senate Rejects GENIUS Act, Stablecoin Regulation Delayed

The Senate recently rejected a motion to invoke cloture on the GENIUS Act, a bill aimed at regulating stablecoins in the US. The decision was made by a narrow margin, with 49 Democrat senators voting against the motion and 48 in favor. Senate Majority Leader John Thune criticized the Democrats for using the filibuster for the fourth time in 2025, stating that the reason for their opposition was unclear.

Thune emphasized the bipartisan nature of the bill, noting that it had undergone a bipartisan process from the start. He argued that if the Democrats were genuinely interested in making further changes, they would have voted for cloture to allow for amendments on the floor.

Senator Tim Scott expressed his disappointment, describing the rejection of the motion as an obstruction of innovation. He believed that both Democrats and Republicans missed an opportunity to collaborate and deliver meaningful change for Americans.

Treasury Secretary Scott Bessent also weighed in, stating that the Senate had missed a chance to provide American leadership in the crypto space. He highlighted the importance of the bill in expanding dollar dominance and US influence in financial innovation. Without it, stablecoins would be subject to a patchwork of state regulations rather than a streamlined federal framework, which he deemed more conducive to growth and competitiveness.

Senator Cynthia Lummis shared her discontentment on an X statement, expressing her deep disappointment with the vote's result. She emphasized the importance of digital assets for the future and thanked key figures, including President Trump, for their leadership and commitment to keeping digital asset companies and jobs onshore.

Despite the setback, there is optimism that a new version of the bill will be introduced as early as the following week. Galaxy Digital head of research Alex Thorn expressed hope that the legislation would be reintroduced soon. Digital Chamber head of government affairs Taylor Barr reassured that the denial of the cloture motion does not signal the end of digital assets, which he believes are here to stay.

Variant Fund chief legal officer Jake Chervinsky offered a similar perspective, stating that the decision is not a definitive "no," but rather a "not yet." He suggested that more bipartisan work could address the issues that led to the legislation's delay. Solana Policy Institute CEO Miller Whitehouse-Levine echoed this sentiment, expressing confidence that a bipartisan effort would ultimately get the GENIUS Act over the finish line.