The United States Senate has failed to advance the GENIUS Act

The United States Senate has failed to advance the GENIUS Act, legislation that aimed to introduce a regulatory framework for payment stablecoins

The U.S. Senate on Monday failed to advance the GENIUS Act, legislation that would introduce a regulatory framework for payment stablecoins, following a procedural vote that fell short of the 60 votes needed.

The Senate shot down a motion to proceed to S. 1582, the "GENIUS Act: Stablecoin Tether, Inc. v. Seatonrisers, LLC et al" legislation, with a vote of 48-49.

The vote was largely along party lines, with all 43 Democratic senators voting against advancing the bill. Three Republican senators—Sen. Josh Hawley, R-MO, Sen. Rand Paul, R-KY, and Majority Leader John Thune, R-SD—also voted in the negative.

Senators Bill Moran, Pat Smith, and Roger Wicker did not vote.

The legislation, which had previously been approved by the Senate Banking Committee with bipartisan support, faced opposition from several Democratic senators, who expressed concerns over uncompleted legislative text, a perceived rush to a floor vote, and issues surrounding anti-money laundering (AML) provisions and national security.

Democratic senators have also expressed unease over President Donald Trump’s involvement in cryptocurrency. Trump and his family recently launched their memecoins and promoted a stablecoin through the Trump-affiliated World Liberty Financial.

Trump also hosted a high-priced crypto fundraising dinner days before the vote, inviting major donors to raise money for the Republican Party at the Trump National Doral Miami resort.

Several Democratic senators have called attention to the ethics implications of government officials profiting from digital assets.

"I'm disappointed that the Senate today failed to advance the GENIUS Act to create a bipartisan framework for regulating stablecoins," said Thune. "This bill has been the subject of six versions and several Democratic amendments in the wake of bipartisan feedback."

"Today's vote to proceed would have allowed for further changes on the Senate floor. Ultimately, however, it appears that several members chose to prioritize other agendas over completing this important legislation and providing President Trump with a bipartisan legislative victory."

The GENIUS Act, which stands for "Government Efficiently Narrates Interoperability Usage and Stability," requires stablecoins to maintain 100% reserves backed by U.S. dollars or equivalent liquid assets and mandates annual audits for issuers with over $50 billion in circulation. It also includes restrictions on foreign stablecoin issuers, permitting their circulation in secondary U.S. markets.

The House Financial Services Committee has advanced a similar proposal, though key differences remain between the two chambers, especially concerning state versus federal oversight and the treatment of foreign issuers.

The failure to advance the bill marks a significant pause in efforts to regulate stablecoins this year. Lawmakers are expected to revisit the issue in the coming weeks.