The stablecoin bill, known as the GENIUS Act, faces delays in the U.S. Senate due to escalating political tensions and former President Donald Trump's influence on the crypto market.
Delay of the GENIUS Act
The stablecoin legislation, formally titled the GENIUS Act, failed to pass a procedural vote in the Senate on May 8. However, Cody Carbone, chief policy officer at a blockchain advocacy group, stated that this should not be seen as a failure. "Yes, it’s a bump in the road, but very soon we will have another vote," he remarked at Consensus 2025.
Political Headwinds in Stablecoin Regulation
The setback followed growing partisan tensions in Washington. Several Democratic lawmakers reportedly pulled their support due to concerns over Trump’s deepening involvement in crypto markets. Some Republicans accused Democrats of sabotaging the bill to prevent Trump from receiving credit for digital asset regulation. The revised version of the bill is expected to remove any mention of Trump to strengthen bipartisan support.
State-Level Initiatives and Implications
As Congress struggles to pass the GENIUS Act, the island of Tinian, part of the Northern Mariana Islands, passed a local bill to issue a stablecoin known as Marianas US Dollar (MUSD). Lawmakers overrode a veto from the governor, paving the way for MUSD's launch before July. The token will be backed by cash and U.S. Treasury bills and will operate on the eCash blockchain. While there are concerns over the bill's constitutionality, supporters argue it offers an economic lifeline to a region with a small population.
A Senate vote on the stablecoin bill is expected in the coming weeks, which could signify a turning point for digital asset regulation in the U.S.
