US Senate Rejects GENIUS Act Stablecoin Bill in Close Vote

The U.S. Senate on Thursday evening rejected the GENIUS Act, a bill that would have created a legal framework for stablecoins, in a close vote of 48 in favor and 49 against.

The bill, which stands for "Generating Economic, Mobile, Innovation, and New Enterprises Through Useful Savings," was largely supported by Republicans, while most Democrats opposed it.

The legislation, which had been rolled out by Senator Cynthia Lummis (R-WY) and Senator Bill Hagerty (R-TN), aimed to establish national standards for stablecoin issuers, requiring them to register with the Treasury Department and maintain capital buffers.

It also sought to exempt stablecoins from securities regulation if they met specific criteria, shifting the regulatory burden to the Commodities Futures Trading Commission (CFTC).

The Senate's rejection of the bill comes as a setback for crypto advocates, who had been closely following the bill's progress.

The bill's failure also underscores the difficulties that lawmakers face in agreeing on how to regulate the burgeoning digital asset industry.

Senator Lummis, a vocal supporter of crypto, expressed her disappointment with the vote's outcome, highlighting the importance of U.S. dollar hegemony and keeping crypto firms and jobs within the country.

She also thanked President Trump and several bipartisan members of Congress for their ongoing support.

"Digital assets are the future of finance, and we must continue to advance sound regulations to ensure that the U.S. remains a leader in this domain," Lummis stated in her final remarks.

However, Senator Mark Warner (D-VA), a key voice in technological innovation, announced his opposition to the bill in an email to colleagues on Thursday morning.

Despite acknowledging the promise of stablecoins, Senator Warner said he could not support the bill in its current form due to remaining unfinished portions of the bill's text. He pledged to continue working with colleagues to refine the legislation.

"My hope is that we will have a more complete version of this bill that we can vote on as early as next week," Senator Warner added.

The rejection of the Lummis-Hagerty bill comes at a crucial juncture for U.S. crypto policy. With no other major bills pending and the presidential campaign season approaching, the Senate's decision may leave a significant void in crypto regulation.