The US Senate failed to advance the long-anticipated GENIUS Act, which aimed to establish clear rules for stablecoins and facilitate the regulation of digital assets in the country.
Controversial Senate Vote
On May 8, the Senate voted against advancing the GENIUS Act, receiving support from only 49 senators of the 60 required to halt debate. Notably, two Republicans, Senators Josh Hawley and Rand Paul, voted against moving the bill forward alongside Democrats.
Political Disputes and Trump's Influence
Amid rising tensions connected to President Donald Trump's ties to a new cryptocurrency project, Democrats expressed concerns over the potential benefits this legislation could bring. Senator Elizabeth Warren voiced worries that the bill lacked sufficient safeguards against money laundering and corruption, leading to a shift in support among ten Democratic senators.
Future of Crypto Regulation in the US
Senate Majority Leader John Thune stated he would propose a motion to reconsider the bill next week. Given that the bill was critically important for establishing cryptocurrency regulation, its rejection is a significant setback for the industry. The prospects for similar legislation remain uncertain.
The situation surrounding the GENIUS Act highlights the political tensions regarding digital asset regulation in the US. Disputes between Democrats and Republicans indicate that creating clear rules for cryptocurrencies will remain challenging in the lead-up to the upcoming elections.
