Senate Vote to Advance Crypto Bill Fails Following Stalled Bipartisan Talks
Washington, D.C. — A pivotal vote to advance the GENIUS Act, a major piece of legislation aimed at establishing a U.S. regulatory framework for stablecoins, fell short in the Senate on Thursday as bipartisan discussions faltered. The vote concluded with a count of 48-49, as all Democrats present united against the bill, which required 60 votes to proceed to final consideration.
Republican Senators Josh Hawley of Missouri and Rand Paul of Kentucky joined the Democrats in opposing the procedural vote, while Senate Majority Leader John Thune of South Dakota voted “no” as a strategic move, allowing the possibility of revisiting the legislation at a later date.
The GENIUS Act, which would set the first comprehensive regulations for stablecoins—digital assets typically pegged to fiat currencies like the U.S. dollar—initially garnered bipartisan support from the Senate Banking Committee, which passed it earlier this year with backing from five Democrats. However, as the Senate planned to prioritize the bill, some Democratic leaders grew concerned, prompting a shift in support.
Senate Minority Leader Chuck Schumer of New York and Senator Elizabeth Warren of Massachusetts encouraged their colleagues to withhold support to negotiate further concessions from their Republican counterparts. Reports indicate that Democrats sought to include explicit provisions in the legislation that would prevent members of the executive branch, specifically President Donald Trump and his family, from owning or trading cryptocurrencies, as well as stronger anti-corruption measures aimed at enhancing the bill’s protections.
Before the vote, Senator Ruben Gallego of Arizona, a participant in the ongoing negotiations, requested unanimous consent to postpone the vote to ensure more time to finalize proposed amendments. However, Warren opposed the motion, emphasizing that she would only consider voting for the bill if it included updated legislative text reflecting recent discussions.
Challenges in Negotiations
An extensive round of negotiations occurred in the days leading up to the vote among a bipartisan group of senators, including key players from both parties. Despite earlier support, some Democratic senators cited unresolved issues that needed addressing, listing concerns such as anti-money laundering provisions, oversight on foreign issuers, and the overall accountability within the proposed regulatory framework.
A substantial factor affecting Democratic unity appeared to be linked to an investment deal involving a firm backed by Abu Dhabi, which recently committed significant funds to a cryptocurrency venture associated with Trump’s family. This announcement sparked concern among Senate Democrats about potential conflicts of interest and perceived corruption.
Diverging Opinions
Senator Hawley expressed discomfort with the bill’s lack of provisions restricting tech companies from owning stablecoins. Meanwhile, Senator Paul voiced his fears over potential overreach in government regulation of the burgeoning crypto industry, arguing against the need for federal oversight within a sector that has been operating without it.
After the vote, Thune reiterated that Democrats could have had opportunities to amend the bill during further discussions on the Senate floor if they had voted in favor of advancing it. His statement reflects a broader frustration among some Republicans, who felt the process could have facilitated more collaborative revisions.
The ongoing negotiations also highlighted varying levels of understanding among Congressional members regarding different types of digital assets, with some senators acknowledging that more education on cryptocurrencies is required.
Looking Ahead
Despite the setback for the GENIUS Act, discussions surrounding cryptocurrency regulations in Congress are likely to continue, especially as concerns about consumer protection and financial integrity evolve. With multiple senators, including both Democrats and Republicans, pushing for regulatory clarity, the implications of this legislative deadlock may drive future negotiations as the crypto sector continues its expansion in a rapidly changing financial landscape.
This story is developing, and further updates will follow as new information becomes available.
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