Tim Scott Blames Democrats for Blocking the GENIUS Act, Accusing Them of Political Games.

Treasury Secretary Scott Bessent warns the Senate's failure on stablecoin regulation weakens U.S. leadership in the global crypto race.

The U.S. Senate’s failure to vote on the GENIUS Act has set off a chain reaction, with cryptocurrency voices and the Treasury Secretary joining in to criticize the move.

What began as a bipartisan effort to provide the U.S. with a framework for stablecoins has hit a snag, with the GENIUS Act, short for the Guiding and Establishing National Innovation for US Stablecoins Act, failing to reach closure on Monday.

The bill, which had cleared early hurdles with bipartisan support, aimed to create a clear federal framework for stablecoins, seen as a meaningful step forward for crypto innovation in the U.S.

However, Democrats pulled out support for the act at the last moment, a move that Chairman Tim Scott attributed to a prioritization of political optics over progress.

"Instead, we witnessed a disappointing display of political gamesmanship that puts partisan politics above policy, and obstruction above innovation," said Scott.

He added that the real motive was to deny President Trump a win in the digital asset space.

"It was a vote against President Trump and President Trump's legislative agenda. It was a vote to stop President Trump from having a victory in the digital asset space."

Treasury Secretary Warns of Global LeadershipImplications

Not long after the vote, Treasury Secretary Scott Bessent joined in on the criticism, warning that the move sends the wrong message globally at a time when digital assets are rapidly advancing.

"For stablecoins and other digital assets to thrive globally, the world needs American leadership," Bessent wrote on X. "The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act."

However, another camp is busy erecting barriers to crypto integration.

Democrats recently introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which aims to prevent federal officials from profiting off memecoins.

Earlier this week, Senators Jeff Merkley and Chuck Schumer dropped the End Crypto Corruption Act, which seeks to ban the president, vice president, members of Congress, senior officials, and their families from benefiting financially from crypto assets, including stablecoins and memecoins.

Senator Elizabeth Warren expressed her concern, arguing that Democrats on both sides of the GENIUS vote agree that green-lighting Donald Trump's corrupt stablecoin deals is wrong.

"I'm glad Senate Democrats blocked a vote on this Trump wet dream," Warren stated in a comment to CBS News.

Industry Voices Urge Action Over Apathy

Outside of Washington, crypto voices also weighed in on the matter.

Galaxy Digital CEO Mike Novogratz called on the Senate to return to the bill this weekend.

"I really hope the Senate goes back to work this weekend. It is imperative for the U.S. to get a stable coin bill done. This should NOT be partisan," Novogratz stated.

Many in the industry agree that with regions like Europe rolling out frameworks like MiCA and Asian markets moving quickly, the U.S. now appears to be fearlessly forging ahead in the crypto sphere.

Without clear rules, stablecoin innovation remains largely uncharted territory, with no answers in sight. Developers face uncertainty, major players like Coinbase are staying cautious, and the U.S. risks losing its edge to more agile jurisdictions.

The GENIUS Act may be down for now, but the bigger question remains: can the U.S. afford to keep stalling while the rest of the world marches forward?

Stay tuned for more updates as this story continues to develop.

The post Treasury Secretary, Industry Leaders Slam Senate’s Failure on Stablecoin Act, Setting Off a Political Storm appeared first on TokenPulse.

The post Treasury Secretary, Industry Leaders Slam Senate’s Failure on Stablecoin Act, Setting Off a Political Storm first appeared on TokenPulse.