The U.S. Senate has blocked the advancement of the GENIUS Act, prompting a negative reaction from Treasury Secretary J. Yellen and concern over the state of digital assets in the country.
Yellen's Reaction to the Blockage of the GENIUS Act
On May 9, 2025, U.S. Treasury Secretary Janet Yellen expressed discontent over the Senate's blockage of the GENIUS Act, highlighting that this decision negatively impacts U.S. leadership in digital asset innovation. Yellen noted that the bill, introduced by Senator Bill Hagerty, could have established unified rules for stablecoin regulation.
Market Status After GENIUS Act Refusal
As of 12:19 UTC, the stablecoin USDC remains stable at $1.00, with a market cap of $60.67 billion. Despite minimal price changes over the past 90 days, trading volume reached $24.44 billion. Coincu analysts suggest that a lack of clear regulatory standards may adversely affect stablecoin adoption in U.S. markets.
Potential Consequences for Digital Assets
Historically, failures in U.S. legislation lead to increased activity in other markets, such as the EU and Singapore, which are advancing their regulatory frameworks. Yellen pointed out that without federal legislation, stablecoins will remain governed by various state laws, potentially slowing their growth and international competitiveness.
The blockage of the GENIUS Act raises questions about the future of U.S. leadership in digital assets and underscores the need for a unified federal approach to support the growth of this sector.
