By Mark Hunter
1 day agoMon May 12 2025 10: 09: 59
Reading Time: 2 minutes
- The GENIUS Act failed to pass an initial Senate vote last week, stalling bipartisan efforts to regulate stablecoins
- Democratic opposition has intensified over concerns about President Trump’s financial ties to crypto ventures
- Senate leaders have initiated renegotiations, aiming for a revised vote as early as this week
The U.S. Senate’s attempt to advance the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act encountered a significant hurdle last week, failing to secure the necessary votes. The setback stems from growing Democratic concerns about potential conflicts of interest involving President Trump’s crypto ventures. Despite the procedural failure, Senate leaders are actively working on revisions, with a potential second vote anticipated in the coming days.
Trump’s Crypto Involvement Hampering Bill
The GENIUS Act, first proposed in February, is a proposed U.S. law aimed at establishing a federal regulatory framework for stablecoins, requiring issuers to meet licensing, reserve, and transparency standards under government oversight. Its goal is to legitimise stablecoins for broader use in finance while ensuring consumer protections and financial stability. Supporters say it will provide clarity and trust in the sector, but critics warn it could favour large players and enable political conflicts of interest, especially given concerns about ties between lawmakers and crypto ventures.
The Act faced a 48-49 vote in the Senate last week, falling short of the 60 votes required to advance. Notably, Senators Rand Paul and Josh Hawley joined Democrats in opposition, citing issues related to national secur