US Senate Blocks Stablecoin Bill Amid Democratic Opposition

The GENIUS Act, a bipartisan bill aimed at providing regulatory clarity for the $246 billion stablecoin industry, failed to advance in the U.S. Senate after not meeting the 60-vote threshold for cloture, falling 48-49. Despite multiple amendments including stricter anti-money laundering provisions to address Democratic concerns, opposition remained, partly fueled by apprehensions about President Donald Trump's involvement in cryptocurrency ventures, which Democrats cited as a conflict of interest. Senate Majority Leader John Thune criticized Democrats for blocking the bill despite extensive negotiations and changes, suggesting the opposition was politically motivated rather than substantive. Some Republicans, including Thune himself, voted against the bill to enable its reintroduction, with expectations of a revised version soon. Key Democratic senators expressed the need for stronger safeguards, particularly around foreign issuers and consumer protections, before supporting such legislation. The failure to pass the bill underscores ongoing tensions in Congress over how best to regulate stablecoins amid broader debates on cryptocurrency oversight.