Senate Democrats Block Bipartisan Stablecoin Regulation Bill

The U.S. Senate failed to advance the bipartisan GENIUS Act, legislation designed to create a regulatory framework for stablecoins, with a 49-48 procedural vote falling short of the 60 votes needed. Democrats, citing concerns over insufficient consumer protections and anti-money laundering measures, united against the bill, joined by Republicans Josh Hawley and Rand Paul, who opposed government regulation in this sector. Progressive groups and lawmakers, including Sen. Bernie Sanders and the organization Our Revolution, criticized the bill as too lenient and accused it of benefiting cryptocurrency ventures linked to former President Donald Trump. The GENIUS Act, which had initially received some bipartisan support, aimed to establish clear issuance guidelines for stablecoins, require one-to-one reserve backing, and impose anti-money laundering and national security measures. Senate Majority Leader John Thune criticized Democrats for blocking the bill despite opportunities to amend it, while Senate Democrats defended their opposition by emphasizing the need for stronger safeguards. Meanwhile, Sen. Catherine Cortez Masto and others have proposed separate legislation targeting corruption related to cryptocurrency holdings by federal officials, underscoring ongoing concerns about crypto regulation and ethics in government.