Senate Fails to Advance Bipartisan GENIUS Act

The U.S. Senate failed to advance the GENIUS Act, which would have created a federal regulatory framework for stablecoins, drawing criticism from Treasury Secretary Scott Bessent and crypto advocates concerned about U.S. leadership in digital assets. The bill, initially bipartisan, was blocked after Senate Democrats withdrew support due to national security, anti-money laundering, and incomplete legislative text concerns. Critics, including Sen. Tim Scott and crypto-friendly Republicans, accused Democrats of internal divisions and being swayed by progressive anti-crypto voices, as well as political tensions related to President Trump’s support for crypto. The failure of the bill has left the industry facing a patchwork of state regulations and greater uncertainty about future oversight. This impasse underscores partisan divides and comes as global competitors watch U.S. regulatory gridlock. The debate also reflects wider issues involving crypto’s impact on financial inclusion and campaign finance.