Senate Fails to Advance Crypto Bill Amid Democratic Opposition
By Kaia Hubbard and Caitlin Yilek, CBS News Digital
Updated on: May 8, 2025
Washington, D.C. — In a significant setback for cryptocurrency regulation efforts, the U.S. Senate failed to advance a crucial procedural vote on the GENIUS Act, a bill designed to establish a regulatory framework for stablecoins. The vote, which took place on Thursday, was marked by a narrow margin of 48 to 49, falling short of the necessary 60 votes to move forward. The Democratic opposition played a pivotal role in this outcome, fueled by concerns linked to former President Donald Trump and his family’s involvement in the cryptocurrency industry.
The Bill and Its Provisions
The GENIUS Act was introduced as a way to regulate stablecoins, a form of cryptocurrency with values pegged to traditional assets such as the U.S. dollar. The legislation had initially garnered bipartisan support and advanced through the Senate Banking Committee in March. However, the political landscape shifted dramatically as news surfaced about a substantial investment in a Trump family-associated crypto firm, World Liberty Financial, by an Abu Dhabi-backed company.
The proposed investment involves the purchase of $2 billion worth of stablecoin from World Liberty Financial, which is linked to a deal aiming to invest in the crypto exchange Binance. This connection raised alarms among Senate Democrats, leading to increasing opposition to the bill.
Key Quote from Opposition
Among the prominent critics of the legislation, Senator Elizabeth Warren of Massachusetts expressed profound concerns regarding the bill’s implications. She stated, "It runs a substantial risk of eventually blowing up the U.S. economy and putting us once more in a position where taxpayers have to bail out the billionaires while they end up paying for the risks that the rich people took on." Warren also pointed out that Democrats had not seen the final version of the bill prior to the vote, highlighting a lack of transparency in the process.
Calls for Bipartisanship
Despite the opposition, Senate Majority Leader John Thune, a Republican from South Dakota, urged his colleagues to reconsider the bill, stating that it had gone through numerous revisions incorporating input from both parties. He argued that advancing the legislation would allow for further modifications and discussions, saying, "Once we’re on the bill, we can discuss changes here on the floor."
Thune emphasized the importance of providing "clarity" for innovators in the financial sector and described the GENIUS Act as a critical first step towards integrating digital assets within the U.S. financial system.
A Continued Debate
The legislative future of the GENIUS Act remains uncertain as discussions and negotiations continue among lawmakers. Senator Ruben Gallego, a Democrat from Arizona, attempted to delay the vote to allow for further review, but this request was rejected.
In the wake of the vote, Thune criticized the Democrats’ opposition, stating, "I don’t know what Democrats would change about the process this bill has gone through," expressing frustration regarding perceived lack of cooperation.
White House spokesperson Anna Kelly addressed concerns about conflicts of interest involving Trump, remarking that his assets are managed in a trust by his children and asserting that legislation surrounding stablecoins should be pursued on a bipartisan basis.
As the debate surrounding cryptocurrency regulation unfolds, the implications of the Senate’s decision echo through the halls of Washington, highlighting the complexities and challenges facing lawmakers in the rapidly evolving landscape of digital finance.
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