On May 8, the United States Senate failed to push forward the long-anticipated GENIUS Act

The U.S. Senate on Thursday failed to advance the long-anticipated GENIUS Act, which would create clear rules for stablecoins, after a surprising shift in votes from Democratic senators.

The bill, which had bipartisan support and was critical in giving the U.S. a strong foothold in digital asset regulation, now faces an uncertain future.

The vote, which fell short of the 60 votes needed to end debate on the bill formally, was 49-51.

Two Republican senators—Senator Josh Hawley and Senator Rand Paul—joined Democrats in voting against moving forward with the bill.

Democrats, who had once been in support of the GENIUS Act, withdrew their support following reports that President Donald Trump was involved in a new cryptocurrency project.

A company linked to Trump’s family, World Liberty Financial, had launched its stablecoin, USD1, two months earlier and secured a $2 billion investment from the United Arab Emirates.

This raised concerns among Democrats, who accused Trump of influencing public policy for personal financial gain.

Senator Elizabeth Warren, a prominent member of the Senate Banking Committee, expressed her view that the GENIUS Act, which was approved last week, lacked sufficient safeguards against money laundering, foreign interference, and conflicts of interest.

In her opinion, the bill would pave the way for what she termed “crypto corruption” and allow corrupt financial practices to be concealed in the name of innovation.

Ten Democratic senators, who had previously supported the bill, switched their votes. They are seeking more stringent anti-money laundering rules and national security protections.

As these changes could not be promised, they cast their votes against advancing the bill further.

The post Republicans blame democrats for derailing stablecoin bill appeared first on CC News.

The post Republicans blame democrats for derailing stablecoin bill appeared first on CC News.