US Senate Fails to Pass Stablecoin Bill “GENIUS ACT”

In a massive development for the crypto industry, the US Senate has failed to advance the GENIUS Act to the floor of the House following a key procedural vote. Following allegations of corruption against US President Donald Trump, Democratic Senators had asked for an amendment to the stablecoin bill. Still, these Senators have now voted ‘no,’ a move that Republican Senators claim is them playing politics.

Stablecoin Bill Fails To Advance To Next Stage

In an X post, Republican and pro-crypto Senator Cynthia Lummis revealed that the US Senate has failed to advance the GENIUS Act, which aims to introduce a regulatory framework for stablecoins. The Senator expressed her displeasure, stating that she is deeply disappointed that they could not pass the “important bipartisan crafted stablecoin legislation today.

According to Journalist Eleanor Terrett, Senate Banking Committee Chairman Senator Tim Scott blamed Democrats suffering from “Trump Derangement Syndrome” and playing politics. He said,

It was a vote against President Trump and President Trump’s legislative agenda. A vote to stop President Trump from having a victory in the digital asset space. Trump Derangement Syndrome has once again hijacked responsible governance in this chamber.

CoinGape has earlier reported that Senator Elizabeth Warren, a Democrat and key member of the Banking Committee, had urged the US Senate to reject the stablecoin bill over corruption allegations trailing Trump’s USD1 stablecoin.

In the same light, ten US Senators who had initially voted in favor of the stablecoin bill rejected the Act, citing a string of concerns. They asked for an amendment, seeking tighter anti-money laundering and national security rules, which led to this procedural vote to amend the bill.

In an X post, Senator Bill Hagerty, who introduced the bill, stated that Democrats just unilaterally ceded American leadership capability in the digital asset industry to the CCP because they fear the far-left radicals of their party.

Plans To Reintroduce The Bill

Eleanor Terrett revealed that Senator John Thune, the majority leader of the US Senate, plans to file a motion to reconsider the stablecoin bill again as soon as next week. Before the calls for an amendment to the bill, the GENIUS Act was due for a final vote before May 26, which if passed, would have marked the first major crypto regulation.

However, with the procedural vote failing, the bill looks likely to start again from the committee level before it can pass to the floor of the house. Meanwhile, in the US House, Republicans also look to be facing pushback from Democrats on crypto bills in the lower chamber. As CoinGape reported, Rep Maxine Waters slammed the crypto market structure bill while calling it ‘Trump’s corruption.