Key Takeaways:

The GENIUS Act, a bipartisan stablecoin regulation bill, was blocked in the Senate after Democrats pulled support over concerns tied to Trump’s crypto ties.
Despite amendments to strengthen AML provisions, the bill failed to pass a crucial procedural vote, stalling federal regulation efforts.
Treasury officials and lawmakers warned that the failure risks ceding digital financial leadership and stablecoin oversight to fragmented state laws or foreign entities.

The GENIUS Act, a bipartisan bill designed to regulate stablecoins in the U.S., stalled in the Senate after Democrats withdrew support, largely due to concerns tied to President Donald Trump’s crypto activities.

The bill, formally titled the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, failed to pass a key procedural vote on May 8.

Despite amendments aimed at strengthening Anti-Money Laundering rules, it lacked sufficient backing to proceed.

Sponsored by Senator Bill Hagerty and supported by lawmakers including Tim Scott, Kirsten Gillibrand, Cynthia Lummis, and Angela Alsobrooks, the bill aimed to bring regulatory clarity to payment-focused stablecoins and bolster the U.S. dollar’s global position.

Senate Majority Leader John Thune and other co-sponsors expressed frustration over the setback.

Treasury Secretary Scott Bessent called the missed vote a lost opportunity to assert U.S. leadership in financial innovation, warning that fragmented state laws would continue to govern stablecoins in the absence of a cohesive federal framework.

For stablecoins and other digital assets to thrive globally, the world needs American leadership.

The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.

This bill represents a once-in-a-generation opportunity to expand dollar…
— Treasury Secretary Scott Bessent (@SecScottBessent) May 8, 2025

Blockchain Association CEO Kristin Smith viewed the bipartisan nature of the bill as encouraging for future efforts.

While the bill’s failure represents a short-term defeat, many see it as a signal that stablecoin regulation remains a bipartisan priority moving forward.