Senate Fails Cloture on Stablecoin GENIUS Act

The U.S. Senate failed to advance the GENIUS Act, a bipartisan bill aimed at regulating stablecoins, after a cloture vote fell short with only 48 to 49 votes in favor, below the required 60. The bill, sponsored by Republican Senator Bill Hagerty and co-sponsored by others including Tim Scott and Cynthia Lummis, faced opposition from both Democrats and some Republicans such as Josh Hawley and Rand Paul, who raised concerns about foreign influence, consumer protections, and ethical risks related to stablecoins. Democrats criticized the bill for not sufficiently addressing issues like anti-money laundering and the involvement of former President Trump and his family in stablecoin ventures, with Senators Elizabeth Warren and Bernie Sanders vocal in their opposition. Senate Majority Leader John Thune indicated openness to amendments and further debate on the Senate floor, suggesting the legislative process would continue despite the setback. Treasury Secretary Scott Bessent lamented the missed opportunity to establish a federal framework that could enhance U.S. leadership in digital asset innovation, warning that failure to act would hinder competitiveness and allow innovation to move offshore. Efforts to negotiate revisions and engage more senators are ongoing, highlighting the complexity and partisan challenges in establishing stablecoin regulation.