The US Senate did not pass the GENIUS Act, which proposed a framework for stablecoin regulation, highlighting ongoing political divisions and market uncertainty.
GENIUS Act Rejected in Senate
On May 8, 2025, the US Senate rejected the GENIUS Act by a narrow vote of 48 to 49. Expected Republican support could not compensate for Democratic opposition, which expressed concerns over corruption risks linked to the Trump family.
Ongoing Debate Surrounding Stablecoins
The debate over stablecoin regulation continues to reveal deep political divides, as efforts to regulate cryptocurrencies spark disputes about balancing innovation and oversight. An unclear regulatory environment may impact innovations and investments in this sector.
Regulatory Future of Stablecoins
Without a clear regulatory framework, growth of US stablecoins may lag, affecting global competitiveness. Historical data indicates that proper regulation can foster innovation by providing legal clarity.
The rejection of the GENIUS Act underscores the need for clear regulatory standards for stablecoins in the US to ensure future innovation and economic development.
