Senate rejects GENIUS Act following Democratic opposition in the upper legislative house
**The Senate Stumbles on Stablecoin Regulation****
In a twist for the crypto community, the U.S. Senate failed to progress the highly-anticipated GENIUS Act last Thursday. The bill, aimed at regulating stablecoins, fell short of the 60 votes needed in a procedural cloture vote, leaving the crypto industry in a state of limbo.
The vote, initially standing at 49 in favor and 48 against, took a surprising turn when Senate Majority Leader John Thune switched his vote to "no" at the last minute. This tactical move left the door open for a potential revote, suggesting that the vote was more about procedural advancements than the content of the bill itself.
Despite months of negotiations and a previous win in the Senate Banking Committee, late opposition from Senate Democrats put a spanner in the works. Lawmakers voiced worries over insufficient safeguards against illicit finance and foreign stablecoin issuers. Moreover, several Democrats pointed to President Donald Trump's alleged crypto affiliations as complicating factors.
Senators Josh Hawley and Rand Paul broke ranks to vote against the legislation, while Senator Ruben Gallego - who previously supported the bill and received generous support from pro-crypto PACs - urged a pause to revise the legislation.
On the optimistic side, some lawmakers remain hopeful. Sen. Mark Warner noted that the bill "isn't yet finished" and still requires key protections for Americans. Meanwhile, Republicans like Sen. Cynthia Lummis warned that delaying progress could stifle U.S. crypto innovation.
The debate may reemerge next week, pending further negotiations.
**Trump Crypto News: Ripples Over Truth Social Post****
Amidst the ongoing crypto conundrum, news about a Trump-linked memecoin and fundraising dinners adds another layer of complexity. While the Senate navigates the intricacies of stablecoin regulation, this new development could potentially impact the presidential landscape.
Stay tuned as we unravel more about these intriguing twists in the world of crypto and politics!
Enrichment Data:
- Procedural Vote: The cloture vote was a procedural move designed to limit debate and advance the bill to formal debate. The vote required 60 votes and fell short.
- Crypto Affiliations: Some Democrats question President Trump's involvement in crypto, particularly after revelations about a Trump stablecoin being used for a significant payment.
- Opposition from Democrats: Opposition from Democrats culminated in the failure of the GENIUS Act to pass the cloture vote. Concerns centered around insufficient safeguards against illicit finance and foreign stablecoin issuers.
- Gallego's Reversal: Sen. Ruben Gallego, who previously supported the bill and received $10 million from pro-crypto PACs in 2024, urged a pause to revise the legislation.
- Republican Optimism: Some lawmakers, like Sen. Cynthia Lummis, remain optimistic about the bill and warn that delaying progress could hinder U.S. crypto innovation.
- Trump Stablecoin: Speculation surrounds a potential Trump stablecoin and its role in the crypto sphere. The existence of such a coin could impact the presidential landscape.
- The GENIUS Act, aimed at regulating crypto tokens like XRP and stablecoins, failed to progress in the Senate due to insufficient votes in a procedural cloture vote.
- Senators voiced concerns over insufficient safeguards against illicit finance and foreign stablecoin issuers, with some Democrats even pointing to President Trump's alleged crypto affiliations as a complicating factor.
- Some lawmakers, like Sen. Cynthia Lummis, remain optimistic about the bill's progress, warning that delaying its advancement could stifle U.S. crypto innovation and the growth of DEX platforms.
- In a surprise move, Senate Majority Leader John Thune switched his vote to "no" at the last minute, leaving the door open for a potential revote on the legislative policy related to war-and-conflicts, crime-and-justice, and general-news.
- During the Senate Banking Committee negotiations, Sen. Ruben Gallego, who received generous support from pro-crypto PACs, attempted to pause the legislation to revise it, breaking ranks with his previous support for the bill.
- Amidst these developments, news about a Trump-linked memecoin and fundraising dinners adds another layer of complexity to the ongoing debate about crypto regulation in politics.
- The future of stablecoin policy and legislation will continue to be a topic of discussion in the Senate, as negotiations may reemerge next week, with Democrats urging for a closer look at the bill's content and its potential impact on crime-and-justice and foreign policy.
